Contrasting Capstead Mortgage (CMO) and Manhattan Bridge Capital (LOAN)
Capstead Mortgage (NYSE: CMO) and Manhattan Bridge Capital (NASDAQ:LOAN) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
This table compares Capstead Mortgage and Manhattan Bridge Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manhattan Bridge Capital||59.63%||14.43%||8.33%|
71.2% of Capstead Mortgage shares are owned by institutional investors. Comparatively, 13.0% of Manhattan Bridge Capital shares are owned by institutional investors. 1.7% of Capstead Mortgage shares are owned by insiders. Comparatively, 32.3% of Manhattan Bridge Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Capstead Mortgage and Manhattan Bridge Capital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capstead Mortgage||$233.40 million||3.42||$79.58 million||$0.65||13.14|
|Manhattan Bridge Capital||$4.65 million||10.90||$2.83 million||$0.41||15.24|
Capstead Mortgage has higher revenue and earnings than Manhattan Bridge Capital. Capstead Mortgage 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
Capstead Mortgage has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Capstead Mortgage pays an annual dividend of $0.76 per share and has a dividend yield of 8.9%. Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 7.0%. Capstead Mortgage pays out 116.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and price targets for Capstead Mortgage and Manhattan Bridge Capital, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manhattan Bridge Capital||0||0||2||0||3.00|
Capstead Mortgage presently has a consensus price target of $9.50, indicating a potential upside of 11.24%. Manhattan Bridge Capital has a consensus price target of $7.38, indicating a potential upside of 18.00%. Given Manhattan Bridge Capital’s higher possible upside, analysts clearly believe Manhattan Bridge Capital is more favorable than Capstead Mortgage.
Manhattan Bridge Capital beats Capstead Mortgage on 10 of the 15 factors compared between the two stocks.
Capstead Mortgage Company Profile
Capstead Mortgage Corporation operates as a self-managed real estate investment trust (REIT). The Company manages a leveraged portfolio of residential mortgage pass-through securities consisting of relatively short-duration adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac), or by an agency of the federal government, the Government National Mortgage Association (Ginnie Mae). The Company finances its residential mortgage investments by leveraging its long-term investment capital with secured borrowings consisting primarily of borrowings under repurchase arrangements with commercial banks and other financial institutions. The Company’s portfolio of residential mortgage investments includes residential mortgage investments.
Manhattan Bridge Capital Company Profile
Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.
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