Rithm Property Trust (NYSE:RPT – Get Free Report) and Ellington Financial (NYSE:EFC – 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 valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Valuation & Earnings
This table compares Rithm Property Trust and Ellington Financial”s gross 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 | 1.84 | $1.47 million | ($0.26) | -48.04 |
| Ellington Financial | $189.96 million | 9.05 | $146.87 million | $1.64 | 8.14 |
Risk & Volatility
Rithm Property Trust has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Ellington Financial has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Dividends
Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 11.5%. Ellington Financial pays an annual dividend of $1.56 per share and has a dividend yield of 11.7%. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend. Ellington Financial pays out 95.1% 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 & Institutional Ownership
58.6% of Rithm Property Trust shares are owned by institutional investors. Comparatively, 55.6% of Ellington Financial shares are owned by institutional investors. 0.4% of Rithm Property Trust shares are owned by insiders. Comparatively, 3.2% of Ellington Financial 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Rithm Property Trust and Ellington Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rithm Property Trust | 1 | 0 | 0 | 1 | 2.50 |
| Ellington Financial | 0 | 4 | 0 | 0 | 2.00 |
Ellington Financial has a consensus price target of $14.50, suggesting a potential upside of 8.65%. Given Ellington Financial’s higher possible upside, analysts plainly believe Ellington Financial is more favorable than Rithm Property Trust.
Profitability
This table compares Rithm Property Trust and Ellington Financial’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% |
| Ellington Financial | 52.43% | 16.61% | 1.38% |
Summary
Ellington Financial beats Rithm Property Trust on 11 of the 16 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 Ellington Financial
Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments; and consumer loans and asset-backed securities backed by consumer and commercial assets. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Ellington Financial LLC was incorporated in 2007 and is headquartered in Old Greenwich, Connecticut.
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