New York Mortgage Trust (NASDAQ:NYMTM – Get Free Report) and Apollo Commercial Real Estate Finance (NYSE:ARI – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.
Valuation and Earnings
This table compares New York Mortgage Trust and Apollo Commercial Real Estate Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New York Mortgage Trust | $273.96 million | N/A | N/A | N/A | N/A |
| Apollo Commercial Real Estate Finance | $271.59 million | 3.24 | $126.72 million | $0.80 | 8.55 |
Dividends
New York Mortgage Trust pays an annual dividend of $1.97 per share and has a dividend yield of 7.7%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 14.6%. Apollo Commercial Real Estate Finance pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares New York Mortgage Trust and Apollo Commercial Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New York Mortgage Trust | N/A | N/A | N/A |
| Apollo Commercial Real Estate Finance | 55.49% | 7.39% | 1.58% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for New York Mortgage Trust and Apollo Commercial Real Estate Finance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New York Mortgage Trust | 0 | 0 | 0 | 0 | 0.00 |
| Apollo Commercial Real Estate Finance | 1 | 3 | 2 | 0 | 2.17 |
Apollo Commercial Real Estate Finance has a consensus price target of $11.33, indicating a potential upside of 65.69%. Given Apollo Commercial Real Estate Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Apollo Commercial Real Estate Finance is more favorable than New York Mortgage Trust.
Institutional & Insider Ownership
54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 0.5% of Apollo Commercial Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Apollo Commercial Real Estate Finance beats New York Mortgage Trust on 9 of the 11 factors compared between the two stocks.
About New York Mortgage Trust
New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company also 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. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.
About Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
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