Ladder Capital (NYSE: LADR) and Blackstone Mortgage Trust (NYSE:BXMT) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
This table compares Ladder Capital and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackstone Mortgage Trust||53.86%||8.47%||2.28%|
This table compares Ladder Capital and Blackstone Mortgage Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ladder Capital||$450.14 million||3.73||$95.27 million||$1.20||12.56|
|Blackstone Mortgage Trust||$303.05 million||11.40||$217.63 million||$2.27||14.06|
Blackstone Mortgage Trust has lower revenue, but higher earnings than Ladder Capital. Ladder Capital is trading at a lower price-to-earnings ratio than Blackstone Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ladder Capital has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
This is a summary of recent ratings for Ladder Capital and Blackstone Mortgage Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackstone Mortgage Trust||0||2||4||0||2.67|
Ladder Capital presently has a consensus price target of $16.50, indicating a potential upside of 9.49%. Blackstone Mortgage Trust has a consensus price target of $33.25, indicating a potential upside of 4.17%. Given Ladder Capital’s stronger consensus rating and higher probable upside, research analysts clearly believe Ladder Capital is more favorable than Blackstone Mortgage Trust.
Ladder Capital pays an annual dividend of $1.26 per share and has a dividend yield of 8.4%. Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 7.8%. Ladder Capital pays out 105.0% 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 109.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ladder Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
49.7% of Ladder Capital shares are owned by institutional investors. Comparatively, 61.3% of Blackstone Mortgage Trust shares are owned by institutional investors. 12.5% of Ladder Capital shares are owned by company insiders. Comparatively, 0.9% of Blackstone Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Ladder Capital beats Blackstone Mortgage Trust on 10 of the 16 factors compared between the two stocks.
Ladder Capital Company Profile
Ladder Capital Corp is a commercial real estate finance company. The Company’s segments include loans, securities, real estate and corporate/other. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment consists of all of its activities related to commercial real estate securities, which include investments in commercial mortgage-backed securities (CMBS) and United States Agency Securities. The real estate segment includes net leased properties, office buildings, a warehouse and condominium units. The Corporate/other segment includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company invests primarily in loans, securities and other interests in the United States commercial real estate, with a focus on senior secured assets.
Blackstone Mortgage Trust Company Profile
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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