Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) and NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Bimini Capital Management and NexPoint Real Estate Finance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bimini Capital Management | 0 | 0 | 0 | 0 | 0.00 |
| NexPoint Real Estate Finance | 0 | 4 | 0 | 0 | 2.00 |
NexPoint Real Estate Finance has a consensus price target of $14.75, suggesting a potential upside of 2.08%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher possible upside, analysts plainly believe NexPoint Real Estate Finance is more favorable than Bimini Capital Management.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bimini Capital Management | $11.90 million | 1.44 | -$1.31 million | $0.09 | 18.89 |
| NexPoint Real Estate Finance | $72.51 million | 3.53 | $29.19 million | $2.81 | 5.14 |
NexPoint Real Estate Finance has higher revenue and earnings than Bimini Capital Management. NexPoint Real Estate Finance is trading at a lower price-to-earnings ratio than Bimini Capital Management, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bimini Capital Management and NexPoint Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bimini Capital Management | -4.70% | -8.69% | -0.44% |
| NexPoint Real Estate Finance | 102.28% | 17.52% | 1.14% |
Institutional and Insider Ownership
67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. 45.4% of Bimini Capital Management shares are owned by company insiders. Comparatively, 55.7% of NexPoint Real Estate Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Bimini Capital Management pays an annual dividend of $0.13 per share and has a dividend yield of 7.6%. NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 13.8%. Bimini Capital Management pays out 144.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NexPoint Real Estate Finance pays out 71.2% of its earnings in the form of a dividend. NexPoint Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Bimini Capital Management has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, NexPoint Real Estate Finance has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Summary
NexPoint Real Estate Finance beats Bimini Capital Management on 15 of the 15 factors compared between the two stocks.
About Bimini Capital Management
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.
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 equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. 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.
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