Seven Hills Realty Trust (NASDAQ:SEVN) and Granite Point Mortgage Trust (NYSE:GPMT) Head-To-Head Survey

Granite Point Mortgage Trust (NYSE:GPMT) and Seven Hills Realty Trust (NASDAQ:SEVN) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Insider and Institutional Ownership

51.6% of Granite Point Mortgage Trust shares are held by institutional investors. 6.4% of Granite Point Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Granite Point Mortgage Trust and Seven Hills Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$131.73 million	0.44	-$41.15 million	($2.01)	-0.59
Seven Hills Realty Trust	$25.58 million	N/A	N/A	$1.46	5.32

Seven Hills Realty Trust has lower revenue, but higher earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than Seven Hills Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Granite Point Mortgage Trust and Seven Hills Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	1	3	0	0	1.75
Seven Hills Realty Trust	1	0	5	0	2.67

Granite Point Mortgage Trust currently has a consensus target price of $1.33, indicating a potential upside of 11.58%. Seven Hills Realty Trust has a consensus target price of $10.38, indicating a potential upside of 33.70%. Given Seven Hills Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Seven Hills Realty Trust is more favorable than Granite Point Mortgage Trust.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 16.7%. Seven Hills Realty Trust pays an annual dividend of $1.12 per share and has a dividend yield of 14.4%. Granite Point Mortgage Trust pays out -10.0% of its earnings in the form of a dividend. Seven Hills Realty Trust pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Granite Point Mortgage Trust and Seven Hills Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-73.75%	-10.25%	-3.37%
Seven Hills Realty Trust	N/A	N/A	N/A

Summary

Seven Hills Realty Trust beats Granite Point Mortgage Trust on 8 of the 13 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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. The company was founded in 2015 and is headquartered in New York, New York.

About Seven Hills Realty Trust

Seven Hills Realty Trust, a real estate investment trust, focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. 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 formerly known as RMR Mortgage Trust. Seven Hills Realty Trust was incorporated in 2008 and is headquartered in Newton, Massachusetts.