Manhattan Bridge Capital (NASDAQ:LOAN – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Manhattan Bridge Capital and Claros Mortgage Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manhattan Bridge Capital | 1 | 1 | 0 | 0 | 1.50 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
Claros Mortgage Trust has a consensus price target of $2.08, suggesting a potential upside of 30.62%. Given Claros Mortgage Trust’s higher probable upside, analysts plainly believe Claros Mortgage Trust is more favorable than Manhattan Bridge Capital.
Profitability
This table compares Manhattan Bridge Capital and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manhattan Bridge Capital | 58.61% | 11.14% | 7.60% |
| Claros Mortgage Trust | -371.29% | -20.86% | -7.06% |
Earnings & Valuation
This table compares Manhattan Bridge Capital and Claros Mortgage Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manhattan Bridge Capital | $8.67 million | 4.29 | $5.11 million | $0.42 | 7.80 |
| Claros Mortgage Trust | $187.83 million | 1.20 | -$489.07 million | ($3.66) | -0.44 |
Manhattan Bridge Capital has higher earnings, but lower revenue than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Manhattan Bridge Capital has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Insider and Institutional Ownership
21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 24.6% of Manhattan Bridge Capital shares are held by company insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Manhattan Bridge Capital beats Claros Mortgage Trust on 9 of the 13 factors compared between the two stocks.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) is a self-managed real estate investment trust that originates, services and manages loans secured by first mortgages on real property. The company primarily provides short-term, interest-only financing to real estate investors and owners who may require capital for property acquisitions, renovations, construction or other development-related needs. Its loan portfolio is focused mainly on residential and commercial properties in the New York metropolitan area, including New York City and Long Island.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. is a real estate investment trust focused on commercial real estate finance. It originates and invests in loans secured by commercial properties, with an emphasis on transitional properties that may need renovation, repositioning, or leasing before reaching more stable operations. The company’s investments include senior mortgage loans and other forms of commercial real estate debt. Its lending activity primarily serves properties in U.S. markets, and its portfolio may span property types such as multifamily, office, and hospitality.
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