Manhattan Bridge Capital (NASDAQ:LOAN – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Manhattan Bridge Capital and Claros Mortgage Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manhattan Bridge Capital | 0 | 2 | 0 | 0 | 2.00 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
Claros Mortgage Trust has a consensus target price of $2.08, indicating a potential upside of 26.34%. Given Claros Mortgage Trust’s higher possible upside, analysts plainly believe Claros Mortgage Trust is more favorable than Manhattan Bridge Capital.
Valuation and Earnings
This table compares Manhattan Bridge Capital and Claros Mortgage Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manhattan Bridge Capital | $8.67 million | 4.38 | $5.11 million | $0.42 | 7.97 |
| Claros Mortgage Trust | $187.83 million | 1.24 | -$489.07 million | ($3.66) | -0.45 |
Manhattan Bridge Capital has higher earnings, but lower revenue than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Manhattan Bridge Capital has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Institutional & Insider Ownership
21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 24.6% of Manhattan Bridge 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, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Manhattan Bridge Capital and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manhattan Bridge Capital | 58.61% | 11.14% | 7.60% |
| Claros Mortgage Trust | -371.29% | -20.86% | -7.06% |
Summary
Manhattan Bridge Capital beats Claros Mortgage Trust on 9 of the 13 factors compared between the two stocks.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. 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 founded in 1989 and is headquartered in Great Neck, 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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