Financial Comparison: Rithm Capital (NYSE:RITM) vs. Presidio Property Trust (NASDAQ:SQFT)

Presidio Property Trust (NASDAQ:SQFT) and Rithm Capital (NYSE:RITM) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

38.9% of Presidio Property Trust shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 24.0% of Presidio Property Trust shares are owned by company insiders. Comparatively, 0.4% of Rithm Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Presidio Property Trust and Rithm Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presidio Property Trust	0	0	0	0	0.00
Rithm Capital	0	0	8	1	3.11

Rithm Capital has a consensus price target of $13.56, indicating a potential upside of 19.76%. Given Rithm Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Rithm Capital is more favorable than Presidio Property Trust.

Profitability

This table compares Presidio Property Trust and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presidio Property Trust	-176.04%	-29.85%	-9.37%
Rithm Capital	17.79%	18.15%	2.57%

Valuation and Earnings

This table compares Presidio Property Trust and Rithm Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presidio Property Trust	$18.26 million	0.30	$10.15 million	($16.50)	-0.28
Rithm Capital	$2.73 billion	2.20	$931.50 million	$1.20	9.44

Rithm Capital has higher revenue and earnings than Presidio Property Trust. Presidio Property Trust is trading at a lower price-to-earnings ratio than Rithm Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

Presidio Property Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 8.8%. Presidio Property Trust pays out -0.1% of its earnings in the form of a dividend. Rithm Capital pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Presidio Property Trust has raised its dividend for 1 consecutive years.

Risk and Volatility

Presidio Property Trust has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

Rithm Capital beats Presidio Property Trust on 14 of the 18 factors compared between the two stocks.

About Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.