PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) and Rithm Property Trust (NYSE:RPT – 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 institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for PennyMac Mortgage Investment Trust and Rithm Property Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PennyMac Mortgage Investment Trust | 2 | 4 | 3 | 0 | 2.11 |
| Rithm Property Trust | 1 | 0 | 0 | 1 | 2.50 |
PennyMac Mortgage Investment Trust presently has a consensus price target of $11.50, suggesting a potential upside of 42.26%. Given PennyMac Mortgage Investment Trust’s higher probable upside, equities analysts clearly believe PennyMac Mortgage Investment Trust is more favorable than Rithm Property Trust.
Risk and Volatility
Insider & Institutional Ownership
67.4% of PennyMac Mortgage Investment Trust shares are held by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are held by institutional investors. 1.0% of PennyMac Mortgage Investment Trust shares are held by insiders. Comparatively, 0.4% of Rithm Property Trust shares are held 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
PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 19.8%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 13.3%. PennyMac Mortgage Investment Trust pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Property Trust pays out -553.8% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares PennyMac Mortgage Investment Trust and Rithm Property Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PennyMac Mortgage Investment Trust | $307.46 million | 2.29 | $127.87 million | $1.42 | 5.69 |
| Rithm Property Trust | $52.80 million | 1.60 | $1.47 million | ($0.26) | -41.69 |
PennyMac Mortgage Investment Trust has higher revenue and earnings than Rithm Property Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than PennyMac Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PennyMac Mortgage Investment Trust and Rithm Property Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PennyMac Mortgage Investment Trust | 47.79% | 12.50% | 0.76% |
| Rithm Property Trust | 5.87% | 1.20% | 0.29% |
Summary
PennyMac Mortgage Investment Trust beats Rithm Property Trust on 13 of the 17 factors compared between the two stocks.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.
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.
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