NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) and New York Mortgage Trust (NASDAQ:NYMTL – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Earnings and Valuation
This table compares NexPoint Real Estate Finance and New York Mortgage Trust’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexPoint Real Estate Finance | $82.72 million | 3.58 | $6.75 million | $0.03 | 574.67 |
| New York Mortgage Trust | $113.73 million | N/A | N/A | N/A | N/A |
NexPoint Real Estate Finance has higher earnings, but lower revenue than New York Mortgage Trust.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for NexPoint Real Estate Finance and New York Mortgage Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexPoint Real Estate Finance | 0 | 2 | 1 | 1 | 2.75 |
| New York Mortgage Trust | 0 | 0 | 0 | 0 | N/A |
NexPoint Real Estate Finance currently has a consensus price target of $17.50, suggesting a potential upside of 1.51%. Given NexPoint Real Estate Finance’s higher probable upside, equities research analysts plainly believe NexPoint Real Estate Finance is more favorable than New York Mortgage Trust.
Institutional & Insider Ownership
66.1% of NexPoint Real Estate Finance shares are owned by institutional investors. 53.6% of NexPoint Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares NexPoint Real Estate Finance and New York Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexPoint Real Estate Finance | 7.79% | 10.19% | 0.49% |
| New York Mortgage Trust | N/A | N/A | N/A |
Summary
NexPoint Real Estate Finance beats New York Mortgage Trust on 8 of the 9 factors compared between the two stocks.
About NexPoint Real Estate Finance
NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common stock, as well as multifamily commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.
About New York Mortgage 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, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; 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.
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