RC vs. ARI, TWO, PMT, MFA, CIM, ARR, DX, NYMT, IVR, and ACRE
Should you be buying Ready Capital stock or one of its competitors? The main competitors of Ready Capital include Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), Chimera Investment (CIM), ARMOUR Residential REIT (ARR), Dynex Capital (DX), New York Mortgage Trust (NYMT), Invesco Mortgage Capital (IVR), and Ares Commercial Real Estate (ACRE). These companies are all part of the "mortgage reits" industry.
Ready Capital (NYSE:RC) and Apollo Commercial Real Estate Finance (NYSE:ARI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, media sentiment, earnings, dividends, analyst recommendations, community ranking, risk, valuation and institutional ownership.
55.9% of Ready Capital shares are held by institutional investors. Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 1.0% of Ready Capital shares are held by insiders. Comparatively, 0.6% of Apollo Commercial Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Ready Capital has higher revenue and earnings than Apollo Commercial Real Estate Finance. Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Ready Capital, indicating that it is currently the more affordable of the two stocks.
Apollo Commercial Real Estate Finance received 76 more outperform votes than Ready Capital when rated by MarketBeat users. However, 61.36% of users gave Ready Capital an outperform vote while only 58.86% of users gave Apollo Commercial Real Estate Finance an outperform vote.
In the previous week, Apollo Commercial Real Estate Finance had 10 more articles in the media than Ready Capital. MarketBeat recorded 18 mentions for Apollo Commercial Real Estate Finance and 8 mentions for Ready Capital. Ready Capital's average media sentiment score of 0.54 beat Apollo Commercial Real Estate Finance's score of 0.09 indicating that Ready Capital is being referred to more favorably in the media.
Ready Capital has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Ready Capital currently has a consensus target price of $10.93, indicating a potential upside of 27.37%. Apollo Commercial Real Estate Finance has a consensus target price of $10.38, indicating a potential upside of 3.54%. Given Ready Capital's stronger consensus rating and higher probable upside, analysts clearly believe Ready Capital is more favorable than Apollo Commercial Real Estate Finance.
Ready Capital pays an annual dividend of $1.20 per share and has a dividend yield of 13.9%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 14.0%. Ready Capital pays out 51.3% of its earnings in the form of a dividend. Apollo Commercial Real Estate Finance pays out -179.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apollo Commercial Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Ready Capital has a net margin of 35.69% compared to Apollo Commercial Real Estate Finance's net margin of -28.20%. Ready Capital's return on equity of 7.99% beat Apollo Commercial Real Estate Finance's return on equity.
Summary
Ready Capital beats Apollo Commercial Real Estate Finance on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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