Blackstone Mortgage Trust (NYSE:BXMT) and Paragon Real Estate Equity Reit (OTCMKTS:PRLE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Blackstone Mortgage Trust has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Paragon Real Estate Equity Reit has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500.
61.9% of Blackstone Mortgage Trust shares are held by institutional investors. 1.0% of Blackstone Mortgage Trust shares are held by insiders. Comparatively, 69.5% of Paragon Real Estate Equity Reit shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Blackstone Mortgage Trust and Paragon Real Estate Equity Reit, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blackstone Mortgage Trust||0||5||1||0||2.17|
|Paragon Real Estate Equity Reit||0||0||0||0||N/A|
Blackstone Mortgage Trust currently has a consensus target price of $34.17, suggesting a potential downside of 1.51%. Given Blackstone Mortgage Trust’s higher possible upside, equities research analysts plainly believe Blackstone Mortgage Trust is more favorable than Paragon Real Estate Equity Reit.
Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 7.1%. Paragon Real Estate Equity Reit does not pay a dividend. Blackstone Mortgage Trust pays out 93.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Blackstone Mortgage Trust and Paragon Real Estate Equity Reit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blackstone Mortgage Trust||51.44%||9.58%||2.40%|
|Paragon Real Estate Equity Reit||N/A||2.59%||0.57%|
Earnings and Valuation
This table compares Blackstone Mortgage Trust and Paragon Real Estate Equity Reit’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blackstone Mortgage Trust||$396.48 million||10.83||$285.07 million||$2.65||13.09|
|Paragon Real Estate Equity Reit||$16.76 million||0.04||$210,000.00||N/A||N/A|
Blackstone Mortgage Trust has higher revenue and earnings than Paragon Real Estate Equity Reit.
Blackstone Mortgage Trust beats Paragon Real Estate Equity Reit on 11 of the 13 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by properties in North America, Europe, and Australia. The company operates as a real estate investment trust for federal income tax purposes. It generally would not be subject to U.S. federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was founded in 1966 and is headquartered in New York, New York.
About Paragon Real Estate Equity Reit
Paragon Real Estate Equity and Investment Trust does not have significant operations. It primarily focuses on searching for and reviewing real estate opportunities, including land development, retail, office, industrial, hotel, other real estate investment and operating companies, and joint venture investments. The company was founded in 1994 and is headquartered in Houston, Texas with an additional office in Cleveland, Ohio.
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