Comparing Manhattan Bridge Capital (NASDAQ:LOAN) & TPG RE Finance Trust (NYSE:TRTX)

Manhattan Bridge Capital (NASDAQ:LOAN) and TPG RE Finance Trust (NYSE:TRTX) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares Manhattan Bridge Capital and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	58.30%	11.02%	7.59%
TPG RE Finance Trust	17.03%	6.85%	1.66%

Insider & Institutional Ownership

21.8% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are owned by institutional investors. 24.6% of Manhattan Bridge Capital shares are owned by insiders. Comparatively, 3.0% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Manhattan Bridge Capital and TPG RE Finance Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	1	0	0	2.00
TPG RE Finance Trust	0	2	4	0	2.67

TPG RE Finance Trust has a consensus target price of $10.00, indicating a potential upside of 25.85%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Manhattan Bridge Capital.

Risk and Volatility

Manhattan Bridge Capital has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 10.7%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 12.1%. Manhattan Bridge Capital pays out 104.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust pays out 177.8% 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 raised its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Manhattan Bridge Capital and TPG RE Finance Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$8.67 million	5.43	$5.11 million	$0.42	9.80
TPG RE Finance Trust	$332.58 million	1.83	$60.32 million	$0.54	14.71

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

Summary

TPG RE Finance Trust beats Manhattan Bridge Capital on 10 of the 17 factors compared between the two stocks.

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. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 1989 and is headquartered in Great Neck, New York.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.