Analyzing Bellway (OTC:BLWYY) & Claros Mortgage Trust (NYSE:CMTG)

Bellway (OTC:BLWYY) and Claros Mortgage Trust (NYSE:CMTG) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Dividends

Bellway pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. Claros Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 9.6%. Claros Mortgage Trust pays out -25.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

89.5% of Claros Mortgage Trust shares are held by institutional investors. 1.4% of Claros Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Bellway and Claros Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bellway	N/A	N/A	N/A
Claros Mortgage Trust	-89.07%	4.72%	1.35%

Analyst Recommendations

This is a summary of current ratings for Bellway and Claros Mortgage Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bellway	0	0	0	1	4.00
Claros Mortgage Trust	2	3	1	0	1.83

Claros Mortgage Trust has a consensus target price of $4.31, suggesting a potential upside of 3.17%. Given Claros Mortgage Trust’s higher possible upside, analysts plainly believe Claros Mortgage Trust is more favorable than Bellway.

Volatility & Risk

Bellway has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Valuation & Earnings

This table compares Bellway and Claros Mortgage Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bellway	$3.00 billion	1.25	$164.33 million	N/A	N/A
Claros Mortgage Trust	$97.78 million	5.96	$6.03 million	($1.59)	-2.63

Bellway has higher revenue and earnings than Claros Mortgage Trust.

Summary

Claros Mortgage Trust beats Bellway on 10 of the 15 factors compared between the two stocks.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.