Angel Oak Mortgage REIT (NYSE:AOMR) & TPG RE Finance Trust (NYSE:TRTX) Head-To-Head Analysis

Angel Oak Mortgage REIT (NYSE:AOMR) and TPG RE Finance Trust (NYSE:TRTX) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations for Angel Oak Mortgage REIT and TPG RE Finance Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	1	2	3	0	2.33
TPG RE Finance Trust	1	2	4	0	2.43

Angel Oak Mortgage REIT currently has a consensus target price of $9.81, suggesting a potential upside of 39.58%. TPG RE Finance Trust has a consensus target price of $9.33, suggesting a potential upside of 43.15%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe TPG RE Finance Trust is more favorable than Angel Oak Mortgage REIT.

Earnings and Valuation

This table compares Angel Oak Mortgage REIT and TPG RE Finance Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$143.65 million	1.14	$44.02 million	$0.75	9.37
TPG RE Finance Trust	$332.58 million	1.49	$60.32 million	$0.39	16.72

TPG RE Finance Trust has higher revenue and earnings than Angel Oak Mortgage REIT. Angel Oak Mortgage REIT 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.

Risk & Volatility

Angel Oak Mortgage REIT has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 18.2%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 14.7%. Angel Oak Mortgage REIT pays out 170.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Angel Oak Mortgage REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by insiders. Comparatively, 3.0% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Angel Oak Mortgage REIT and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	11.85%	7.74%	0.71%
TPG RE Finance Trust	13.13%	5.21%	1.17%

Summary

TPG RE Finance Trust beats Angel Oak Mortgage REIT on 11 of the 16 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 2018 and is headquartered in Atlanta, Georgia.

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.