Analyzing Tremont Mortgage Trust (NASDAQ:TRMT) and Lexington Realty Trust (NASDAQ:LXP)
Tremont Mortgage Trust (NASDAQ:TRMT) and Lexington Realty Trust (NYSE:LXP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
This table compares Tremont Mortgage Trust and Lexington Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tremont Mortgage Trust||54.00%||6.87%||2.32%|
|Lexington Realty Trust||82.95%||18.04%||8.64%|
This table compares Tremont Mortgage Trust and Lexington Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tremont Mortgage Trust||$15.48 million||1.62||$4.84 million||N/A||N/A|
|Lexington Realty Trust||$325.97 million||8.21||$279.91 million||$0.80||12.91|
Lexington Realty Trust has higher revenue and earnings than Tremont Mortgage Trust.
Institutional & Insider Ownership
8.8% of Tremont Mortgage Trust shares are held by institutional investors. Comparatively, 90.9% of Lexington Realty Trust shares are held by institutional investors. 20.5% of Tremont Mortgage Trust shares are held by company insiders. Comparatively, 2.1% of Lexington Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Tremont Mortgage Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.3%. Lexington Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 4.1%. Lexington Realty Trust pays out 52.5% of its earnings in the form of a dividend. Lexington Realty Trust has increased its dividend for 8 consecutive years. Lexington Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and target prices for Tremont Mortgage Trust and Lexington Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tremont Mortgage Trust||0||2||0||0||2.00|
|Lexington Realty Trust||0||3||1||0||2.25|
Tremont Mortgage Trust currently has a consensus price target of $4.25, suggesting a potential upside of 39.80%. Lexington Realty Trust has a consensus price target of $10.13, suggesting a potential downside of 1.98%. Given Tremont Mortgage Trust’s higher possible upside, analysts plainly believe Tremont Mortgage Trust is more favorable than Lexington Realty Trust.
Volatility and Risk
Tremont Mortgage Trust has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, Lexington Realty Trust has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
Lexington Realty Trust beats Tremont Mortgage Trust on 12 of the 16 factors compared between the two stocks.
Tremont Mortgage Trust Company Profile
Tremont Mortgage Trust, a real estate investment trust (REIT), focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. The company qualifies as a REIT 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 founded in 2017 and is headquartered in Newton, Massachusetts. Tremont Mortgage Trust is a subsidiary of Tremont Realty Advisors LLC.
Lexington Realty Trust Company Profile
Lexington Realty Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) that owns a diversified portfolio of real estate assets consisting primarily of equity investments in single-tenant net-leased commercial properties across the United States. Lexington seeks to expand its industrial portfolio through build-to-suit transactions, sale-leaseback transactions and other transactions, including acquisitions.
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