Claros Mortgage Trust (NYSE:CMTG – Get Free Report) and Invesco Mortgage Capital (NYSE:IVR – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Institutional and Insider Ownership
89.5% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 40.5% of Invesco Mortgage Capital shares are held by institutional investors. 2.6% of Claros Mortgage Trust shares are held by insiders. Comparatively, 0.2% of Invesco Mortgage Capital shares are held 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.
Profitability
This table compares Claros Mortgage Trust and Invesco Mortgage Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Claros Mortgage Trust | -371.29% | -20.86% | -7.06% |
| Invesco Mortgage Capital | -8.49% | 26.75% | 2.80% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Claros Mortgage Trust and Invesco Mortgage Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
| Invesco Mortgage Capital | 1 | 2 | 1 | 0 | 2.00 |
Claros Mortgage Trust presently has a consensus price target of $2.08, suggesting a potential upside of 29.80%. Invesco Mortgage Capital has a consensus price target of $8.38, suggesting a potential upside of 66.34%. Given Invesco Mortgage Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Invesco Mortgage Capital is more favorable than Claros Mortgage Trust.
Risk and Volatility
Claros Mortgage Trust has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Invesco Mortgage Capital has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.
Valuation & Earnings
This table compares Claros Mortgage Trust and Invesco Mortgage Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Claros Mortgage Trust | $187.83 million | 1.21 | -$489.07 million | ($3.66) | -0.44 |
| Invesco Mortgage Capital | $295.29 million | 1.86 | $101.28 million | ($0.18) | -27.97 |
Invesco Mortgage Capital has higher revenue and earnings than Claros Mortgage Trust. Invesco Mortgage Capital is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Invesco Mortgage Capital beats Claros Mortgage Trust on 11 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. is a real estate investment trust focused on commercial real estate finance. It originates and invests in loans secured by commercial properties, with an emphasis on transitional properties that may need renovation, repositioning, or leasing before reaching more stable operations. The company’s investments include senior mortgage loans and other forms of commercial real estate debt. Its lending activity primarily serves properties in U.S. markets, and its portfolio may span property types such as multifamily, office, and hospitality.
About Invesco Mortgage Capital
Invesco Mortgage Capital Inc. is a real estate investment trust that invests in mortgage-related assets, with a portfolio focused on residential and commercial mortgage-backed securities and mortgage loans. Its investments include securities backed by U.S. government agencies as well as non-agency securities. Founded in 2009, the company is externally managed by Invesco Advisers, Inc., an investment adviser affiliated with Invesco Ltd. Its activities are primarily focused on U.S. mortgage markets.
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