Angel Oak Mortgage REIT (NYSE:AOMR) vs. Rithm Capital (NYSE:RITM) Head-To-Head Analysis

Rithm Capital (NYSE:RITM) and Angel Oak Mortgage REIT (NYSE:AOMR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Rithm Capital and Angel Oak Mortgage REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$4.59 billion	1.15	$681.45 million	$0.60	15.81
Angel Oak Mortgage REIT	$143.65 million	1.30	$44.02 million	$0.75	10.69

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

Profitability

This table compares Rithm Capital and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	9.20%	19.86%	2.84%
Angel Oak Mortgage REIT	11.85%	7.74%	0.71%

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 10.5%. Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 16.0%. Rithm Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Angel Oak Mortgage REIT pays out 170.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

44.9% of Rithm Capital shares are owned by institutional investors. Comparatively, 80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. 0.6% of Rithm Capital shares are owned by company insiders. Comparatively, 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Rithm Capital has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Rithm Capital and Angel Oak Mortgage REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	10	0	2.91
Angel Oak Mortgage REIT	0	3	3	0	2.50

Rithm Capital currently has a consensus price target of $13.15, indicating a potential upside of 38.64%. Angel Oak Mortgage REIT has a consensus price target of $10.06, indicating a potential upside of 25.51%. Given Rithm Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Rithm Capital is more favorable than Angel Oak Mortgage REIT.

Summary

Rithm Capital beats Angel Oak Mortgage REIT on 9 of the 16 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company 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. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company 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. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.