Adamas Trust (ADAM) versus The Competition Head to Head Review

Adamas Trust (NASDAQ:ADAM) is one of 55 public companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it contrast to its rivals? We will compare Adamas Trust to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, risk and dividends.

Profitability

This table compares Adamas Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
Adamas Trust Competitors	4.73%	7.57%	1.11%

Valuation and Earnings

This table compares Adamas Trust and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Adamas Trust	$601.95 million	$149.05 million	5.92
Adamas Trust Competitors	$641.39 million	$157.00 million	5.05

Adamas Trust’s rivals have higher revenue and earnings than Adamas Trust. Adamas Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for Adamas Trust and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	4	1	1	2.50
Adamas Trust Competitors	623	1919	2071	135	2.36

Adamas Trust presently has a consensus price target of $9.50, indicating a potential downside of 4.43%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 20.76%. Given Adamas Trust’s rivals higher probable upside, analysts clearly believe Adamas Trust has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

54.9% of Adamas Trust shares are held by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by institutional investors. 2.0% of Adamas Trust shares are held by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 10.9%. Adamas Trust pays out 64.3% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 12.9% and pay out 267.9% of their earnings in the form of a dividend.

Risk & Volatility

Adamas Trust has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Adamas Trust’s rivals have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.

Summary

Adamas Trust beats its rivals on 8 of the 15 factors compared.

Adamas Trust Company Profile

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, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 2003 and is headquartered in New York, New York.