Reviewing Ready Capital (RC) & The Competition

Ready Capital (NYSE:RC) is one of 52 public companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it compare to its rivals? We will compare Ready Capital to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Ready Capital and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ready Capital	$569.17 million	-$228.91 million	-0.25
Ready Capital Competitors	$762.88 million	$157.00 million	18.22

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

Risk & Volatility

Ready Capital has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Ready Capital’s rivals have a beta of 1.21, suggesting that their average stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Ready Capital and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ready Capital	2	3	0	0	1.60
Ready Capital Competitors	691	1992	2139	136	2.35

Ready Capital currently has a consensus price target of $1.17, suggesting a potential upside of 26.13%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 54.53%. Given Ready Capital’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Ready Capital has less favorable growth aspects than its rivals.

Profitability

This table compares Ready Capital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ready Capital	-163.95%	-9.25%	-1.86%
Ready Capital Competitors	-13.29%	7.67%	1.05%

Institutional and Insider Ownership

55.9% of Ready Capital 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. 1.4% of Ready Capital 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Ready Capital pays an annual dividend of $0.04 per share and has a dividend yield of 4.3%. Ready Capital pays out -1.1% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 17.4% and pay out -110.1% of their earnings in the form of a dividend. Ready Capital lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Ready Capital rivals beat Ready Capital on 12 of the 14 factors compared.

Ready Capital Company Profile

Ready Capital Corporation is a real estate finance company focused on commercial real estate lending. It originates, acquires, finances and services loans secured by commercial properties, including bridge and construction loans for property owners and investors. The company also invests in commercial real estate-related assets and provides financing through programs such as Small Business Administration lending. Its activities serve borrowers and property owners across the United States. Ready Capital is externally managed by Waterfall Asset Management and trades on the New York Stock Exchange under the symbol RC.