Analyzing RAIT Financial Trust (RAS) and Biomed Realty Trust (BMR)
RAIT Financial Trust (NYSE: RAS) and Biomed Realty Trust (NYSE:BMR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
This table compares RAIT Financial Trust and Biomed Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RAIT Financial Trust||-137.66%||-0.66%||-0.09%|
|Biomed Realty Trust||18.98%||3.73%||2.07%|
48.8% of RAIT Financial Trust shares are held by institutional investors. 1.3% of RAIT Financial Trust shares are held 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.
This is a summary of current ratings and price targets for RAIT Financial Trust and Biomed Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RAIT Financial Trust||1||3||0||0||1.75|
|Biomed Realty Trust||0||0||0||0||N/A|
RAIT Financial Trust currently has a consensus price target of $1.28, suggesting a potential upside of 654.90%.
Earnings and Valuation
This table compares RAIT Financial Trust and Biomed Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RAIT Financial Trust||$173.61 million||0.09||$25.34 million||($1.80)||-0.09|
|Biomed Realty Trust||N/A||N/A||N/A||$1.04||N/A|
RAIT Financial Trust has higher revenue and earnings than Biomed Realty Trust. RAIT Financial Trust is trading at a lower price-to-earnings ratio than Biomed Realty Trust, indicating that it is currently the more affordable of the two stocks.
RAIT Financial Trust pays an annual dividend of $0.14 per share and has a dividend yield of 82.4%. Biomed Realty Trust pays an annual dividend of $1.04 per share. RAIT Financial Trust pays out -7.8% of its earnings in the form of a dividend. Biomed Realty Trust pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RAIT Financial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
About RAIT Financial Trust
RAIT Financial Trust (RAIT) is a real estate investment trust (REIT). The Company focuses on providing commercial real estate (CRE) financing throughout the United States. The core of its business is a full service CRE lending platform focused on first lien loans. It offers customized lending solutions to meet borrower needs and internal credit goals. It offers personalized middle-market financing solutions and a complement of lending products for CRE. The Company may also offer mezzanine loans and preferred equity interests in limited circumstances to support first lien loans. It is engaged in floating rate securitization programs and has access to multiple sources of funding, including senior debt, convertible securities, preferred securities and common securities. The Company also owns and manages a portfolio of CRE properties, and manages real estate assets for third parties. The Company is engaged in lending, owning and managing CRE assets throughout the United States.
About Biomed Realty Trust
BioMed Realty Trust, Inc. operates as a real estate investment trust (REIT). The Company is the parent company and general partner of BioMed Realty, L.P. The Company owns, acquires, develops, redevelops, leases and manages laboratory and office space for the life science industry. The Company’s tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. The Company’s properties are located in markets, which has centers for scientific research, including Boston, San Francisco, San Diego, Maryland, New York, New Jersey, Pennsylvania, North Carolina, Seattle, Cambridge (the United Kingdom) and research parks located near or adjacent to universities and their related medical systems. The Company owns interests in properties comprising approximately 17.5 million rentable square feet.
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