Manhattan Bridge Capital (NASDAQ:LOAN) & Arbor Realty Trust (NYSE:ABR) Head to Head Contrast

Arbor Realty Trust (NYSE:ABR) and Manhattan Bridge Capital (NASDAQ:LOAN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Arbor Realty Trust and Manhattan Bridge Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	3	2	1	0	1.67
Manhattan Bridge Capital	0	1	0	0	2.00

Arbor Realty Trust presently has a consensus price target of $6.00, suggesting a potential upside of 39.70%. Given Arbor Realty Trust’s higher probable upside, equities analysts plainly believe Arbor Realty Trust is more favorable than Manhattan Bridge Capital.

Profitability

This table compares Arbor Realty Trust and Manhattan Bridge Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	6.24%	7.38%	1.22%
Manhattan Bridge Capital	58.30%	11.02%	7.59%

Risk and Volatility

Arbor Realty Trust has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

57.3% of Arbor Realty Trust shares are owned by institutional investors. Comparatively, 21.8% of Manhattan Bridge Capital shares are owned by institutional investors. 4.2% of Arbor Realty Trust shares are owned by company insiders. Comparatively, 24.6% of Manhattan Bridge Capital shares are owned by company 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.

Valuation & Earnings

This table compares Arbor Realty Trust and Manhattan Bridge Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$472.13 million	1.70	$148.80 million	$0.07	61.36
Manhattan Bridge Capital	$6.60 million	6.82	$5.11 million	$0.42	9.38

Arbor Realty Trust has higher revenue and earnings than Manhattan Bridge Capital. Manhattan Bridge Capital is trading at a lower price-to-earnings ratio than Arbor Realty Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 15.8%. Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 11.2%. Arbor Realty Trust pays out 971.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital pays out 104.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Manhattan Bridge Capital has raised its dividend for 1 consecutive years.

Summary

Manhattan Bridge Capital beats Arbor Realty Trust on 9 of the 17 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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 stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.

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.