Summit Industrial Income REIT (OTCMKTS:SMMCF) & Rithm Property Trust (NYSE:RPT) Critical Survey

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Rithm Property Trust (NYSE:RPT) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 58.6% of Rithm Property Trust shares are owned by institutional investors. 0.3% of Rithm Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Summit Industrial Income REIT and Rithm Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Rithm Property Trust	1	0	0	0	1.00

Profitability

This table compares Summit Industrial Income REIT and Rithm Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Rithm Property Trust	5.52%	1.27%	0.31%

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Rithm Property Trust pays an annual dividend of $1.44 per share and has a dividend yield of 9.5%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Rithm Property Trust pays out -496.6% 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. Rithm Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Summit Industrial Income REIT and Rithm Property Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Rithm Property Trust	$52.80 million	2.22	$1.47 million	($0.29)	-52.07

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

Summary

Rithm Property Trust beats Summit Industrial Income REIT on 9 of the 11 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About Rithm Property Trust

Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.