Head to Head Contrast: Adamas Trust (NASDAQ:ADAM) & TPG RE Finance Trust (NYSE:TRTX)

TPG RE Finance Trust (NYSE:TRTX) and Adamas Trust (NASDAQ:ADAM) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Volatility & Risk

TPG RE Finance Trust has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Adamas Trust has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Dividends

TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 14.1%. Adamas Trust pays an annual dividend of $1.20 per share and has a dividend yield of 20.9%. TPG RE Finance Trust pays out 246.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Adamas Trust pays out -210.5% of its earnings in the form of a dividend. Adamas Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares TPG RE Finance Trust and Adamas Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$332.58 million	1.55	$60.32 million	$0.39	17.47
Adamas Trust	$601.95 million	0.86	$149.05 million	($0.57)	-10.05

Adamas Trust has higher revenue and earnings than TPG RE Finance Trust. Adamas Trust is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TPG RE Finance Trust and Adamas Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	13.13%	5.21%	1.17%
Adamas Trust	-0.26%	15.77%	1.05%

Institutional and Insider Ownership

57.1% of TPG RE Finance Trust shares are owned by institutional investors. Comparatively, 54.9% of Adamas Trust shares are owned by institutional investors. 3.0% of TPG RE Finance Trust shares are owned by insiders. Comparatively, 2.0% of Adamas Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for TPG RE Finance Trust and Adamas Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	1	2	4	0	2.43
Adamas Trust	2	3	1	0	1.83

TPG RE Finance Trust presently has a consensus price target of $9.33, suggesting a potential upside of 36.95%. Adamas Trust has a consensus price target of $9.25, suggesting a potential upside of 61.43%. Given Adamas Trust’s higher probable upside, analysts plainly believe Adamas Trust is more favorable than TPG RE Finance Trust.

Summary

TPG RE Finance Trust beats Adamas Trust on 10 of the 16 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. 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. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About Adamas Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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. The company was incorporated in 2003 and is headquartered in New York, New York.