Jernigan Capital (NASDAQ:JCAP – Get Free Report) and Rithm Property Trust (NYSE:RPT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Insider and Institutional Ownership
58.6% of Rithm Property Trust shares are held by institutional investors. 2.9% of Jernigan Capital shares are held by company insiders. Comparatively, 0.3% of Rithm Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 10.0%. Jernigan Capital pays out 45.1% of its earnings in the form of a dividend. Rithm Property Trust pays out -496.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jernigan Capital | $613.29 million | 1.84 | $187.96 million | $2.13 | 8.59 |
| Rithm Property Trust | $52.80 million | 2.12 | $1.47 million | ($0.29) | -49.79 |
Jernigan Capital has higher revenue and earnings than Rithm Property Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Jernigan Capital and Rithm Property Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jernigan Capital | N/A | N/A | N/A |
| Rithm Property Trust | 5.52% | 1.27% | 0.31% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Jernigan Capital and Rithm Property Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jernigan Capital | 0 | 1 | 6 | 1 | 3.00 |
| Rithm Property Trust | 1 | 0 | 0 | 0 | 1.00 |
Jernigan Capital presently has a consensus target price of $25.20, suggesting a potential upside of 37.78%. Given Jernigan Capital’s stronger consensus rating and higher possible upside, research analysts clearly believe Jernigan Capital is more favorable than Rithm Property Trust.
Summary
Jernigan Capital beats Rithm Property Trust on 9 of the 16 factors compared between the two stocks.
About Jernigan Capital
Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.
About Rithm Property Trust
Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.
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