Analyzing Adamas Trust (ADAM) & Its Rivals

Adamas Trust (NASDAQ:ADAM) is one of 55 publicly-traded companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it contrast to its rivals? We will compare Adamas Trust to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Adamas Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
Adamas Trust Competitors	4.73%	7.57%	1.11%

Risk and Volatility

Adamas Trust has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Adamas Trust’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Institutional and Insider Ownership

54.9% of Adamas Trust shares are held by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by institutional investors. 2.0% of Adamas Trust shares are held by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Adamas Trust and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Adamas Trust	$601.95 million	$149.05 million	5.83
Adamas Trust Competitors	$609.47 million	$157.00 million	5.02

Adamas Trust’s rivals have higher revenue and earnings than Adamas Trust. Adamas Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Adamas Trust and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	4	1	1	2.50
Adamas Trust Competitors	626	1922	2071	135	2.36

Adamas Trust currently has a consensus target price of $9.50, indicating a potential downside of 3.06%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 22.13%. Given Adamas Trust’s rivals higher probable upside, analysts clearly believe Adamas Trust has less favorable growth aspects than its rivals.

Dividends

Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 11.0%. Adamas Trust pays out 64.3% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 13.1% and pay out 267.9% of their earnings in the form of a dividend.

Summary

Adamas Trust beats its rivals on 8 of the 15 factors compared.

Adamas Trust Company Profile

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.