BrightSpire Capital (NYSE:BRSP – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Risk and Volatility
BrightSpire Capital has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Institutional & Insider Ownership
56.6% of BrightSpire Capital shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 2.8% of BrightSpire Capital shares are held by insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BrightSpire Capital | $194.89 million | 2.63 | -$31.15 million | ($0.23) | -17.59 |
| Claros Mortgage Trust | $187.83 million | 1.00 | -$489.07 million | ($3.83) | -0.35 |
BrightSpire Capital has higher revenue and earnings than Claros Mortgage Trust. BrightSpire Capital is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for BrightSpire Capital and Claros Mortgage Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BrightSpire Capital | 2 | 0 | 4 | 0 | 2.33 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
BrightSpire Capital currently has a consensus price target of $6.50, indicating a potential upside of 60.69%. Claros Mortgage Trust has a consensus price target of $2.22, indicating a potential upside of 67.30%. Given Claros Mortgage Trust’s higher probable upside, analysts clearly believe Claros Mortgage Trust is more favorable than BrightSpire Capital.
Profitability
This table compares BrightSpire Capital and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BrightSpire Capital | -20.43% | 7.01% | 1.80% |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
Summary
BrightSpire Capital beats Claros Mortgage Trust on 11 of the 14 factors compared between the two stocks.
About BrightSpire Capital
BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.
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.
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