Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) and Ready Capital (NYSE:RC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
64.2% of Blackstone Mortgage Trust shares are held by institutional investors. Comparatively, 55.9% of Ready Capital shares are held by institutional investors. 1.0% of Blackstone Mortgage Trust shares are held by insiders. Comparatively, 1.1% of Ready Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Blackstone Mortgage Trust and Ready Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Mortgage Trust | 1 | 4 | 1 | 0 | 2.00 |
| Ready Capital | 2 | 5 | 1 | 0 | 1.88 |
Volatility and Risk
Blackstone Mortgage Trust has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Ready Capital has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Dividends
Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.2%. Ready Capital pays an annual dividend of $0.50 per share and has a dividend yield of 17.1%. Blackstone Mortgage Trust pays out -2,685.7% of its earnings in the form of a dividend. Ready Capital pays out -27.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Blackstone Mortgage Trust and Ready Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Mortgage Trust | 7.53% | 4.06% | 0.75% |
| Ready Capital | -40.59% | 3.76% | 0.72% |
Earnings & Valuation
This table compares Blackstone Mortgage Trust and Ready Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackstone Mortgage Trust | $1.77 billion | 1.79 | -$204.09 million | ($0.07) | -264.37 |
| Ready Capital | $896.97 million | 0.54 | -$435.76 million | ($1.85) | -1.58 |
Blackstone Mortgage Trust has higher revenue and earnings than Ready Capital. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than Ready Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Blackstone Mortgage Trust beats Ready Capital on 11 of the 15 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.
About Ready Capital
Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments. The LMM Commercial Real Estate segment originates LLM loans across the full life-cycle of an LLM property, including construction, bridge, stabilized, and agency loan origination channels. The Small Business Lending segment acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program; and acquires purchased future receivables. 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. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.
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