Claros Mortgage Trust (NYSE:CMTG – Get Free Report) and Alexander’s (NYSE:ALX – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
Claros Mortgage Trust has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Earnings & Valuation
This table compares Claros Mortgage Trust and Alexander’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Claros Mortgage Trust | $187.83 million | 1.57 | -$489.07 million | ($3.32) | -0.63 |
| Alexander’s | $213.18 million | 5.64 | $28.22 million | $4.00 | 58.83 |
Alexander’s has higher revenue and earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 32.0% of Alexander’s shares are owned by institutional investors. 1.8% of Claros Mortgage Trust shares are owned by company insiders. Comparatively, 26.4% of Alexander’s shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Claros Mortgage Trust and Alexander’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Claros Mortgage Trust | -267.14% | -19.34% | -6.27% |
| Alexander’s | 9.72% | 17.38% | 1.71% |
Analyst Recommendations
This is a summary of current ratings and target prices for Claros Mortgage Trust and Alexander’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Claros Mortgage Trust | 3 | 0 | 1 | 0 | 1.50 |
| Alexander’s | 0 | 2 | 0 | 0 | 2.00 |
Claros Mortgage Trust currently has a consensus target price of $2.92, suggesting a potential upside of 39.09%. Given Claros Mortgage Trust’s higher probable upside, equities analysts clearly believe Claros Mortgage Trust is more favorable than Alexander’s.
Summary
Alexander’s beats Claros Mortgage Trust on 10 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. 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 incorporated in 2015 and is headquartered in New York, New York.
About Alexander’s
Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.
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