CAPSTEAD Mtg Co/SH (NASDAQ: WHLR) and Wheeler Real Estate Investment Trust (NASDAQ:WHLR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares CAPSTEAD Mtg Co/SH and Wheeler Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAPSTEAD Mtg Co/SH 27.90% 7.22% 0.52%
Wheeler Real Estate Investment Trust -21.64% -48.53% -2.89%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CAPSTEAD Mtg Co/SH and Wheeler Real Estate Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAPSTEAD Mtg Co/SH 1 1 0 0 1.50
Wheeler Real Estate Investment Trust 0 1 2 0 2.67

CAPSTEAD Mtg Co/SH presently has a consensus target price of $9.00, indicating a potential upside of 7.40%. Wheeler Real Estate Investment Trust has a consensus target price of $11.00, indicating a potential upside of 124.95%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Wheeler Real Estate Investment Trust is more favorable than CAPSTEAD Mtg Co/SH.

Risk & Volatility

CAPSTEAD Mtg Co/SH has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Wheeler Real Estate Investment Trust has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Institutional & Insider Ownership

72.1% of CAPSTEAD Mtg Co/SH shares are owned by institutional investors. Comparatively, 23.9% of Wheeler Real Estate Investment Trust shares are owned by institutional investors. 1.4% of CAPSTEAD Mtg Co/SH shares are owned by insiders. Comparatively, 5.3% of Wheeler Real Estate Investment Trust shares are owned 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.

Dividends

CAPSTEAD Mtg Co/SH pays an annual dividend of $0.56 per share and has a dividend yield of 6.7%. Wheeler Real Estate Investment Trust pays an annual dividend of $0.68 per share and has a dividend yield of 13.9%.

Earnings and Valuation

This table compares CAPSTEAD Mtg Co/SH and Wheeler Real Estate Investment Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CAPSTEAD Mtg Co/SH $233.40 million 3.32 $79.58 million N/A N/A
Wheeler Real Estate Investment Trust $58.53 million 0.78 -$12.09 million N/A N/A

CAPSTEAD Mtg Co/SH has higher revenue and earnings than Wheeler Real Estate Investment Trust.

Summary

CAPSTEAD Mtg Co/SH beats Wheeler Real Estate Investment Trust on 8 of the 14 factors compared between the two stocks.

About CAPSTEAD Mtg Co/SH

Capstead Mortgage Corporation operates as a real estate investment trust (REIT) in the United States. It invests in a portfolio of residential mortgage pass-through securities primarily consisting of short-duration adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises, or by an agency of the federal government. The company qualifies as a REIT 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 founded in 1985 and is headquartered in Dallas, Texas.

About Wheeler Real Estate Investment Trust

Headquartered in Virginia Beach, VA, Wheeler Real Estate Investment Trust, Inc. is a fully-integrated, self-managed commercial real estate investment company focused on acquiring and managing income-producing retail properties with a primary focus on grocery-anchored centers. Wheeler's portfolio contains well-located, potentially dominant retail properties in secondary and tertiary markets that generate attractive, risk-adjusted returns, with a particular emphasis on grocery-anchored retail centers. For additional information about the Company, please visit: www.whlr.us.

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