Head-To-Head Analysis: Arbor Realty Trust (NYSE:ABR) and Manhattan Bridge Capital (NASDAQ:LOAN)

Manhattan Bridge Capital (NASDAQ:LOAN) and Arbor Realty Trust (NYSE:ABR) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Manhattan Bridge Capital and Arbor Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	1	0	0	2.00
Arbor Realty Trust	3	2	1	0	1.67

Arbor Realty Trust has a consensus target price of $6.00, suggesting a potential upside of 39.70%. Given Arbor Realty Trust’s higher probable upside, analysts plainly believe Arbor Realty Trust is more favorable than Manhattan Bridge Capital.

Profitability

This table compares Manhattan Bridge Capital and Arbor Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	58.30%	11.02%	7.59%
Arbor Realty Trust	6.24%	7.38%	1.22%

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 11.2%. Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 15.8%. Manhattan Bridge Capital pays out 104.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arbor Realty Trust pays out 971.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital has increased its dividend for 1 consecutive years.

Insider & Institutional Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 57.3% of Arbor Realty Trust shares are held by institutional investors. 24.6% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 4.2% of Arbor Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Manhattan Bridge Capital has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Arbor Realty Trust has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Earnings and Valuation

This table compares Manhattan Bridge Capital and Arbor Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$6.60 million	6.82	$5.11 million	$0.42	9.38
Arbor Realty Trust	$472.13 million	1.70	$148.80 million	$0.07	61.36

Arbor Realty Trust has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than Arbor Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Manhattan Bridge Capital beats Arbor Realty Trust on 9 of the 17 factors compared between the two stocks.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. 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 founded in 1989 and is headquartered in Great Neck, New York.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.