Head to Head Analysis: Rithm Property Trust (NYSE:RPT) & Rithm Capital (NYSE:RITM)

Rithm Property Trust (NYSE:RPT) and Rithm Capital (NYSE:RITM) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Valuation and Earnings

This table compares Rithm Property Trust and Rithm Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Property Trust	$52.80 million	1.92	$1.47 million	($0.26)	-50.27
Rithm Capital	$4.59 billion	1.25	$681.45 million	$0.60	17.12

Rithm Capital has higher revenue and earnings than Rithm Property Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than Rithm Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rithm Property Trust and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	5.87%	1.20%	0.29%
Rithm Capital	9.20%	19.86%	2.84%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rithm Property Trust and Rithm Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	0	1	2.50
Rithm Capital	1	0	10	0	2.82

Rithm Capital has a consensus target price of $13.20, indicating a potential upside of 28.53%. Given Rithm Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Rithm Capital is more favorable than Rithm Property Trust.

Insider and Institutional Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 0.4% of Rithm Property Trust shares are owned by insiders. Comparatively, 0.6% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Rithm Property Trust has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Dividends

Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 11.0%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.7%. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend. Rithm Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Rithm Capital beats Rithm Property Trust on 11 of the 17 factors compared between the two stocks.

About Rithm Property Trust

Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.