Analyzing Adamas Trust (ADAM) and The Competition

Adamas Trust (NASDAQ:ADAM) is one of 55 public companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it contrast to its peers? We will compare Adamas Trust to similar businesses based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, valuation and dividends.

Insider & Institutional Ownership

54.9% of Adamas Trust shares are owned by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are owned by institutional investors. 2.0% of Adamas Trust shares are owned by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are owned by company 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.

Volatility & Risk

Adamas Trust has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Adamas Trust’s peers have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares Adamas Trust and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Adamas Trust	$407.04 million	$149.05 million	6.00
Adamas Trust Competitors	$582.92 million	$157.00 million	5.06

Adamas Trust’s peers have higher revenue and earnings than Adamas Trust. Adamas Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Adamas Trust and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
Adamas Trust Competitors	4.73%	7.57%	1.11%

Analyst Ratings

This is a breakdown of current recommendations for Adamas Trust and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	3	1	1	2.60
Adamas Trust Competitors	618	1913	2066	135	2.36

Adamas Trust currently has a consensus price target of $9.50, indicating a potential downside of 5.80%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 20.85%. Given Adamas Trust’s peers higher possible upside, analysts clearly believe Adamas Trust has less favorable growth aspects than its peers.

Dividends

Adamas Trust pays an annual dividend of $1.20 per share and has a dividend yield of 11.9%. Adamas Trust pays out 71.4% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 13.0% and pay out 268.6% of their earnings in the form of a dividend.

Summary

Adamas Trust beats its peers on 8 of the 15 factors compared.

Adamas Trust Company Profile

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 incorporated in 2003 and is headquartered in New York, New York.