Starwood Property Trust (NYSE:STWD) and Manhattan Bridge Capital (NASDAQ:LOAN) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 10.7%. Manhattan Bridge Capital pays an annual dividend of $0.48 per share and has a dividend yield of 10.4%. Starwood Property Trust pays out 112.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
59.5% of Starwood Property Trust shares are held by institutional investors. Comparatively, 13.7% of Manhattan Bridge Capital shares are held by institutional investors. 3.1% of Starwood Property Trust shares are held by insiders. Comparatively, 27.2% of Manhattan Bridge Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Starwood Property Trust and Manhattan Bridge Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Starwood Property Trust||$1.20 billion||4.24||$509.66 million||$1.71||10.50|
|Manhattan Bridge Capital||$7.22 million||6.18||$4.20 million||$0.48||9.63|
Starwood Property Trust has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than Starwood Property Trust, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Starwood Property Trust has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Starwood Property Trust and Manhattan Bridge Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Starwood Property Trust||0||0||3||0||3.00|
|Manhattan Bridge Capital||0||1||1||0||2.50|
Starwood Property Trust presently has a consensus price target of $26.67, suggesting a potential upside of 48.48%. Manhattan Bridge Capital has a consensus price target of $8.00, suggesting a potential upside of 73.16%. Given Manhattan Bridge Capital’s higher possible upside, analysts plainly believe Manhattan Bridge Capital is more favorable than Starwood Property Trust.
This table compares Starwood Property Trust and Manhattan Bridge Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Starwood Property Trust||41.26%||9.97%||0.67%|
|Manhattan Bridge Capital||59.32%||13.50%||7.73%|
Starwood Property Trust beats Manhattan Bridge Capital on 9 of the 17 factors compared between the two stocks.
About Starwood Property Trust
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and Europe. It operates through three segments: Real Estate Lending, Real Estate Property, and Real Estate Investing and Servicing. The Real Estate Lending segment originates, acquires, finances, and manages commercial first mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities, residential mortgage loans, and other real estate and real estate-related debt investments. The Real Estate Property segment acquires and manages equity interests in commercial real estate properties, including multi-family properties. The Real Estate Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS, including subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust, Inc. was founded in 2009 and is headquartered in Greenwich, Connecticut.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. It offers short-term, secured, and non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation, or enhancement of properties in the New York metropolitan area. The company’s loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the businesses. It qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Manhattan Bridge Capital, Inc. was founded in 1989 and is headquartered in Great Neck, New York.
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