Financial Analysis: Rithm Property Trust (NYSE:RPT) vs. Impac Mortgage (NYSE:IMH)

Rithm Property Trust (NYSE:RPT) and Impac Mortgage (NYSE:IMH) are both small-cap companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	5.52%	1.27%	0.31%
Impac Mortgage	N/A	-1,309.14%	-37.12%

Risk and Volatility

Rithm Property Trust has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Impac Mortgage has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rithm Property Trust and Impac Mortgage”s top-line 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	2.07	$1.47 million	($0.29)	-48.45
Impac Mortgage	$8.60 million	0.01	-$39.43 million	($1.71)	0.00

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rithm Property Trust and Impac Mortgage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	0	0	1.00
Impac Mortgage	0	0	0	0	0.00

Institutional and Insider Ownership

58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 12.5% of Impac Mortgage shares are owned by institutional investors. 0.3% of Rithm Property Trust shares are owned by company insiders. Comparatively, 2.8% of Impac Mortgage shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Rithm Property Trust beats Impac Mortgage on 10 of the 12 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 Impac Mortgage

Impac Mortgage Holdings, Inc. engages in the provision of mortgage and real estate solutions. It operates through the following segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. The Mortgage Lending segment offers mortgage lending products through lending channels, retail, wholesale, and correspondent, and retains mortgage servicing rights and warehouse lending facilities. The Real Estate Services segment performs servicing and provides loss mitigation services for securitized long-term mortgage portfolio. The Long-Term Mortgage Portfolio segment is composed of residual interests in securitization trusts. The company was founded by Joseph R. Tomkinson in August 1995 and is headquartered in Newport Beach, CA.