Jernigan Capital (NASDAQ:JCAP) & Rithm Property Trust (NYSE:RPT) Critical Comparison

Rithm Property Trust (NYSE:RPT) and Jernigan Capital (NASDAQ:JCAP) are both small-cap companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. 0.3% of Rithm Property Trust shares are owned by company insiders. Comparatively, 2.9% of Jernigan Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rithm Property Trust and Jernigan Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	0	0	1.00
Jernigan Capital	0	1	6	1	3.00

Jernigan Capital has a consensus price target of $25.20, suggesting a potential upside of 44.91%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Jernigan Capital is more favorable than Rithm Property Trust.

Profitability

This table compares Rithm Property Trust and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	5.52%	1.27%	0.31%
Jernigan Capital	25.42%	38.63%	8.82%

Dividends

Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 10.0%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 5.5%. Rithm Property Trust pays out -496.6% of its earnings in the form of a dividend. Jernigan Capital pays out 37.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Rithm Property Trust and Jernigan Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Property Trust	$52.80 million	2.13	$1.47 million	($0.29)	-49.86
Jernigan Capital	$613.29 million	1.57	$187.96 million	$2.59	6.71

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

Summary

Jernigan Capital beats Rithm Property Trust on 12 of the 16 factors compared between the two stocks.

About Rithm Property Trust

Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.