Franklin BSP Realty Trust (NYSE:FBRT – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Insider & Institutional Ownership
59.9% of Franklin BSP Realty Trust shares are owned by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are owned by institutional investors. 1.3% of Franklin BSP Realty Trust shares are owned by company insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are owned 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.
Profitability
This table compares Franklin BSP Realty Trust and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Franklin BSP Realty Trust | 20.49% | 5.82% | 1.17% |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
Risk & Volatility
Analyst Recommendations
This is a summary of current recommendations and price targets for Franklin BSP Realty Trust and Claros Mortgage Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Franklin BSP Realty Trust | 1 | 1 | 3 | 0 | 2.40 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
Franklin BSP Realty Trust presently has a consensus target price of $11.50, indicating a potential upside of 37.23%. Claros Mortgage Trust has a consensus target price of $2.22, indicating a potential upside of 24.18%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Franklin BSP Realty Trust is more favorable than Claros Mortgage Trust.
Valuation & Earnings
This table compares Franklin BSP Realty Trust and Claros Mortgage Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Franklin BSP Realty Trust | $270.07 million | 2.58 | $82.27 million | $0.44 | 19.05 |
| Claros Mortgage Trust | $187.83 million | 1.34 | -$489.07 million | ($3.83) | -0.47 |
Franklin BSP Realty Trust has higher revenue and earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Franklin BSP Realty Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Franklin BSP Realty Trust beats Claros Mortgage Trust on 11 of the 14 factors compared between the two stocks.
About Franklin BSP Realty Trust
Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
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