Lument Finance Trust (NYSE:LFT – Get Free Report) and Columbia Financial (NASDAQ:CLBK – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Profitability
This table compares Lument Finance Trust and Columbia Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lument Finance Trust | -3.47% | 7.21% | 1.17% |
| Columbia Financial | 10.91% | 5.12% | 0.54% |
Analyst Recommendations
This is a breakdown of current ratings for Lument Finance Trust and Columbia Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lument Finance Trust | 1 | 0 | 0 | 0 | 1.00 |
| Columbia Financial | 0 | 3 | 0 | 0 | 2.00 |
Valuation & Earnings
This table compares Lument Finance Trust and Columbia Financial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lument Finance Trust | $79.00 million | 0.71 | -$2.74 million | ($0.14) | -7.68 |
| Columbia Financial | $508.02 million | 4.01 | $51.77 million | $0.55 | 35.58 |
Columbia Financial has higher revenue and earnings than Lument Finance Trust. Lument Finance Trust is trading at a lower price-to-earnings ratio than Columbia Financial, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Lument Finance Trust has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Columbia Financial has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.
Institutional and Insider Ownership
19.5% of Lument Finance Trust shares are held by institutional investors. Comparatively, 12.7% of Columbia Financial shares are held by institutional investors. 2.8% of Lument Finance Trust shares are held by insiders. Comparatively, 3.5% of Columbia Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Columbia Financial beats Lument Finance Trust on 9 of the 13 factors compared between the two stocks.
About Lument Finance Trust
Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.
About Columbia Financial
Columbia Financial, Inc., a bank holding company, provides various financial services to businesses and consumers in the United States. Its deposit products include checking, interest-earning checking products and municipal, savings and club deposits, and money market accounts, as well as certificates of deposit. The company also provides various loans, including multifamily and commercial real estate loans, commercial business loans, one-to-four family residential loans, construction loans, home equity loans and advances, and other consumer loans, such as automobiles and personal loans, as well as unsecured and overdraft lines of credit. In addition, it offers title insurance products; wealth management services; and cash management services comprising remote deposit, lockbox service, sweep accounts, and escrow services. The company operates full-service banking offices in New Jersey; and branch offices in Freehold, New Jersey. Columbia Financial, Inc. was founded in 1926 and is based in Fair Lawn, New Jersey. Columbia Financial, Inc. is a subsidiary of Columbia Bank MHC.
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