Rithm Property Trust (NYSE:RPT) versus Manhattan Bridge Capital (NASDAQ:LOAN) Critical Review

Manhattan Bridge Capital (NASDAQ:LOAN) and Rithm Property Trust (NYSE:RPT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares Manhattan Bridge Capital and Rithm Property 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	$8.67 million	5.44	$5.11 million	$0.42	9.83
Rithm Property Trust	$52.80 million	1.92	$1.47 million	($0.26)	-50.23

Manhattan Bridge Capital has higher earnings, but lower revenue than Rithm Property Trust. Rithm Property 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.

Risk & Volatility

Manhattan Bridge Capital has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Rithm Property Trust has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Manhattan Bridge Capital and Rithm Property Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	1	0	0	2.00
Rithm Property Trust	1	0	0	1	2.50

Profitability

This table compares Manhattan Bridge Capital and Rithm Property 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%
Rithm Property Trust	5.87%	1.20%	0.29%

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 10.7%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 11.0%. 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. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend. Manhattan Bridge Capital has raised its dividend for 1 consecutive years. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are owned by institutional investors. 24.6% of Manhattan Bridge Capital shares are owned by insiders. Comparatively, 0.4% of Rithm Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Manhattan Bridge Capital beats Rithm Property Trust on 9 of the 16 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 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.