Reviewing Rithm Property Trust (NYSE:RPT) and Claros Mortgage Trust (NYSE:CMTG)

Claros Mortgage Trust (NYSE:CMTG) and Rithm Property Trust (NYSE:RPT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares Claros Mortgage Trust and Rithm Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-354.13%	-19.70%	-6.52%
Rithm Property Trust	5.87%	1.20%	0.29%

Volatility & Risk

Claros Mortgage Trust has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Rithm Property Trust has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Claros Mortgage Trust and Rithm Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	1	0	0	1.25
Rithm Property Trust	1	0	0	1	2.50

Claros Mortgage Trust currently has a consensus target price of $2.22, suggesting a potential upside of 34.75%. Given Claros Mortgage Trust’s higher possible upside, equities analysts clearly believe Claros Mortgage Trust is more favorable than Rithm Property Trust.

Insider and Institutional Ownership

89.5% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are held by institutional investors. 2.6% of Claros Mortgage 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Claros Mortgage Trust and Rithm Property Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$187.83 million	1.24	-$489.07 million	($3.83)	-0.43
Rithm Property Trust	$52.80 million	1.93	$1.47 million	($0.26)	-50.46

Rithm Property Trust has lower revenue, but higher earnings than Claros Mortgage Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Rithm Property Trust beats Claros Mortgage Trust on 9 of the 14 factors compared between the two stocks.

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.

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.