Rithm Property Trust (NYSE:RPT – Get Free Report) and Arbor Realty Trust (NYSE:ABR – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Rithm Property Trust and Arbor Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rithm Property Trust | 5.87% | 1.20% | 0.29% |
| Arbor Realty Trust | 6.24% | 7.38% | 1.22% |
Risk & Volatility
Rithm Property Trust has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Arbor Realty Trust has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rithm Property Trust | 1 | 0 | 0 | 1 | 2.50 |
| Arbor Realty Trust | 3 | 2 | 1 | 0 | 1.67 |
Arbor Realty Trust has a consensus price target of $6.00, indicating a potential upside of 24.10%. Given Arbor Realty Trust’s higher possible upside, analysts plainly believe Arbor Realty Trust is more favorable than Rithm Property Trust.
Dividends
Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 11.4%. Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 14.1%. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend. 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.
Insider and Institutional Ownership
58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 57.3% of Arbor Realty Trust shares are owned by institutional investors. 0.4% of Rithm Property Trust shares are owned by insiders. Comparatively, 4.2% of Arbor Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Rithm Property Trust and Arbor Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rithm Property Trust | $52.80 million | 1.85 | $1.47 million | ($0.26) | -48.46 |
| Arbor Realty Trust | $940.01 million | 0.96 | $148.80 million | $0.07 | 69.07 |
Arbor Realty Trust has higher revenue and earnings than Rithm Property Trust. Rithm Property Trust 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
Arbor Realty Trust beats Rithm Property Trust on 11 of the 17 factors compared between the two stocks.
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.
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.
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