Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) and Rithm Capital (NYSE:RITM – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and price targets for Blackstone Mortgage Trust and Rithm Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Mortgage Trust | 2 | 2 | 4 | 0 | 2.25 |
| Rithm Capital | 1 | 0 | 10 | 0 | 2.82 |
Blackstone Mortgage Trust presently has a consensus target price of $19.20, indicating a potential upside of 34.44%. Rithm Capital has a consensus target price of $13.15, indicating a potential upside of 28.11%. Given Blackstone Mortgage Trust’s higher probable upside, analysts clearly believe Blackstone Mortgage Trust is more favorable than Rithm Capital.
Risk & Volatility
Profitability
This table compares Blackstone Mortgage Trust and Rithm Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Mortgage Trust | 1.57% | 7.72% | 1.35% |
| Rithm Capital | 9.20% | 19.86% | 2.84% |
Earnings and Valuation
This table compares Blackstone Mortgage Trust and Rithm Capital”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackstone Mortgage Trust | $1.36 billion | 1.77 | $109.57 million | $0.09 | 158.68 |
| Rithm Capital | $4.59 billion | 1.25 | $681.45 million | $0.60 | 17.11 |
Rithm Capital has higher revenue and earnings than Blackstone Mortgage Trust. Rithm Capital is trading at a lower price-to-earnings ratio than Blackstone Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
64.2% of Blackstone Mortgage Trust shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 1.2% of Blackstone Mortgage Trust shares are owned by insiders. Comparatively, 0.6% of Rithm Capital shares are owned by 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
Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 13.2%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.7%. Blackstone Mortgage Trust pays out 2,088.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Capital pays out 166.7% 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
Rithm Capital beats Blackstone Mortgage Trust on 10 of the 16 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.
About Rithm Capital
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.
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