Head to Head Analysis: Altisource Portfolio Solutions (NASDAQ:ASPS) & Granite Point Mortgage Trust (NYSE:GPMT)

Altisource Portfolio Solutions (NASDAQ:ASPS) and Granite Point Mortgage Trust (NYSE:GPMT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Insider and Institutional Ownership

41.4% of Altisource Portfolio Solutions shares are held by institutional investors. Comparatively, 51.6% of Granite Point Mortgage Trust shares are held by institutional investors. 2.3% of Altisource Portfolio Solutions shares are held by insiders. Comparatively, 3.1% of Granite Point Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Altisource Portfolio Solutions and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altisource Portfolio Solutions	-19.37%	N/A	-14.34%
Granite Point Mortgage Trust	-83.98%	-18.94%	-5.47%

Analyst Ratings

This is a summary of current recommendations and price targets for Altisource Portfolio Solutions and Granite Point Mortgage Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altisource Portfolio Solutions	0	0	0	0	0.00
Granite Point Mortgage Trust	0	2	1	0	2.33

Granite Point Mortgage Trust has a consensus price target of $2.75, indicating a potential upside of 15.79%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than Altisource Portfolio Solutions.

Risk & Volatility

Altisource Portfolio Solutions has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Granite Point Mortgage Trust has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Earnings & Valuation

This table compares Altisource Portfolio Solutions and Granite Point Mortgage Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altisource Portfolio Solutions	$160.13 million	0.75	-$35.64 million	($8.16)	-1.32
Granite Point Mortgage Trust	$185.55 million	0.62	-$207.05 million	($3.08)	-0.77

Altisource Portfolio Solutions has higher earnings, but lower revenue than Granite Point Mortgage Trust. Altisource Portfolio Solutions is trading at a lower price-to-earnings ratio than Granite Point Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Granite Point Mortgage Trust beats Altisource Portfolio Solutions on 10 of the 14 factors compared between the two stocks.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2015 and is headquartered in New York, New York.