Head-To-Head Analysis: TPG RE Finance Trust (NYSE:TRTX) versus Granite Point Mortgage Trust (NYSE:GPMT)

TPG RE Finance Trust (NYSE:TRTX) and Granite Point Mortgage Trust (NYSE:GPMT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 16.4%. Granite Point Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 8.4%. TPG RE Finance Trust pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Point Mortgage Trust pays out -2.0% of its earnings in the form of a dividend.

Risk & Volatility

TPG RE Finance Trust has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Granite Point Mortgage Trust has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for TPG RE Finance Trust and Granite Point Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	3	4	0	2.57
Granite Point Mortgage Trust	1	3	0	0	1.75

TPG RE Finance Trust presently has a consensus target price of $10.00, indicating a potential upside of 71.06%. Granite Point Mortgage Trust has a consensus target price of $13.33, indicating a potential upside of 181.00%. Given Granite Point Mortgage Trust’s higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than TPG RE Finance Trust.

Earnings and Valuation

This table compares TPG RE Finance Trust and Granite Point Mortgage Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$142.63 million	3.15	$60.32 million	$0.54	10.83
Granite Point Mortgage Trust	$40.70 million	0.56	-$41.15 million	($20.10)	-0.24

TPG RE Finance Trust has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TPG RE Finance Trust and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	17.03%	6.85%	1.66%
Granite Point Mortgage Trust	-73.75%	-10.25%	-3.37%

Institutional & Insider Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. Comparatively, 51.6% of Granite Point Mortgage Trust shares are held by institutional investors. 3.0% of TPG RE Finance Trust shares are held by insiders. Comparatively, 6.4% of Granite Point Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

TPG RE Finance Trust beats Granite Point Mortgage Trust on 12 of the 16 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. 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. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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 founded in 2015 and is headquartered in New York, New York.