Manhattan Bridge Capital (NASDAQ:LOAN) & MGM Growth Properties (NASDAQ:MGP) Financial Analysis

Manhattan Bridge Capital (NASDAQ:LOAN) and MGM Growth Properties (NYSE:MGP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Profitability

This table compares Manhattan Bridge Capital and MGM Growth Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manhattan Bridge Capital 59.32% 13.50% 7.73%
MGM Growth Properties 8.24% 1.31% 0.71%

Risk & Volatility

Manhattan Bridge Capital has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, MGM Growth Properties has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Manhattan Bridge Capital and MGM Growth Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manhattan Bridge Capital 0 0 1 0 3.00
MGM Growth Properties 0 3 7 0 2.70

Manhattan Bridge Capital currently has a consensus target price of $8.00, suggesting a potential upside of 28.41%. MGM Growth Properties has a consensus target price of $34.78, suggesting a potential upside of 10.76%. Given Manhattan Bridge Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Manhattan Bridge Capital is more favorable than MGM Growth Properties.

Institutional & Insider Ownership

14.5% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 97.4% of MGM Growth Properties shares are owned by institutional investors. 27.2% of Manhattan Bridge Capital shares are owned by company insiders. Comparatively, 0.5% of MGM Growth Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Manhattan Bridge Capital and MGM Growth Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Manhattan Bridge Capital $7.22 million 8.33 $4.20 million N/A N/A
MGM Growth Properties $1.00 billion 3.00 $67.07 million $2.23 14.08

MGM Growth Properties has higher revenue and earnings than Manhattan Bridge Capital.

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.48 per share and has a dividend yield of 7.7%. MGM Growth Properties pays an annual dividend of $1.88 per share and has a dividend yield of 6.0%. MGM Growth Properties pays out 84.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Manhattan Bridge Capital beats MGM Growth Properties on 9 of the 15 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. It offers short-term, secured, and non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation, or enhancement of properties in the New York metropolitan area. The company's loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the businesses. It qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Manhattan Bridge Capital, Inc. was founded in 1989 and is headquartered in Great Neck, New York.

About MGM Growth Properties

MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, the Hard Rock Rocksino Northfield Park in Northfield, OH, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas. As of December 31, 2018, our destination resorts, the Park, and Northfield Park collectively comprise approximately 27,500 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

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