Analyzing Manhattan Bridge Capital (LOAN) & Blackstone Mortgage Trust (BXMT)

Manhattan Bridge Capital (NASDAQ: LOAN) and Blackstone Mortgage Trust (NYSE:BXMT) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Insider and Institutional Ownership

12.0% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 54.1% of Blackstone Mortgage Trust shares are owned by institutional investors. 32.3% of Manhattan Bridge Capital shares are owned by insiders. Comparatively, 0.9% of Blackstone Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Manhattan Bridge Capital and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manhattan Bridge Capital 60.37% 16.72% 8.84%
Blackstone Mortgage Trust 53.85% 8.63% 2.32%

Volatility & Risk

Manhattan Bridge Capital has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Earnings and Valuation

This table compares Manhattan Bridge Capital and Blackstone Mortgage Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manhattan Bridge Capital $4.65 million 10.38 $2.83 million $0.41 14.51
Blackstone Mortgage Trust $313.70 million 10.91 $238.29 million $2.25 14.40

Blackstone Mortgage Trust has higher revenue and earnings than Manhattan Bridge Capital. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for Manhattan Bridge Capital and Blackstone Mortgage Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manhattan Bridge Capital 0 0 2 0 3.00
Blackstone Mortgage Trust 0 2 4 0 2.67

Manhattan Bridge Capital currently has a consensus price target of $7.38, indicating a potential upside of 23.95%. Blackstone Mortgage Trust has a consensus price target of $33.25, indicating a potential upside of 2.59%. Given Manhattan Bridge Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Manhattan Bridge Capital is more favorable than Blackstone Mortgage Trust.

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.41 per share and has a dividend yield of 6.9%. Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 7.7%. 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. Blackstone Mortgage Trust pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Mortgage Trust has raised its dividend for 3 consecutive years. Blackstone Mortgage Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Manhattan Bridge Capital beats Blackstone Mortgage Trust on 9 of the 17 factors compared between the two stocks.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc. is a holding company. The Company conducts its operations as a real estate investment trust for the United States federal income tax purposes. The Company originates and purchases senior loans collateralized by properties in North America and Europe. The Company’s business is focused on originating or acquiring senior, floating rate mortgage loans that are secured by a first priority mortgage on commercial real estate assets primarily in the office, lodging, retail, residential and industrial sectors. These investments may be in the form of whole loans or may also include pari passu participations within mortgage loans. It directly originates, co-originates and acquires debt instruments in conjunction with acquisitions, refinancings and recapitalizations of commercial real estate. The Company’s manager is BXMT Advisors L.L.C.

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