Head to Head Contrast: Rithm Property Trust (NYSE:RPT) and Angel Oak Mortgage REIT (NYSE:AOMR)

Angel Oak Mortgage REIT (NYSE:AOMR) and Rithm Property Trust (NYSE:RPT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Valuation and Earnings

This table compares Angel Oak Mortgage REIT and Rithm Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$36.40 million	4.67	$44.02 million	$0.75	9.76
Rithm Property Trust	$52.80 million	1.64	$1.47 million	($0.26)	-42.92

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

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 17.5%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 12.9%. Angel Oak Mortgage REIT pays out 170.7% 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 pays out -553.8% of its earnings in the form of a dividend.

Profitability

This table compares Angel Oak Mortgage REIT and Rithm Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	11.85%	7.74%	0.71%
Rithm Property Trust	5.87%	1.20%	0.29%

Risk & Volatility

Angel Oak Mortgage REIT has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Rithm Property Trust has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Angel Oak Mortgage REIT and Rithm Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	3	0	2.50
Rithm Property Trust	1	0	0	1	2.50

Angel Oak Mortgage REIT presently has a consensus price target of $10.06, indicating a potential upside of 37.50%. Given Angel Oak Mortgage REIT’s higher probable upside, equities research analysts plainly believe Angel Oak Mortgage REIT is more favorable than Rithm Property Trust.

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Comparatively, 0.4% of Rithm Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Angel Oak Mortgage REIT beats Rithm Property Trust on 13 of the 16 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 2018 and is headquartered in Atlanta, Georgia.

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.