Apollo Commercial Real Estate Finance (NYSE:ARI – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
54.4% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are owned by institutional investors. 0.5% of Apollo Commercial Real Estate Finance shares are owned by insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Apollo Commercial Real Estate Finance and Claros Mortgage Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Apollo Commercial Real Estate Finance | $271.59 million | 3.24 | $126.72 million | $0.80 | 8.57 |
| Claros Mortgage Trust | $187.83 million | 1.14 | -$489.07 million | ($3.83) | -0.40 |
Apollo Commercial Real Estate Finance has higher revenue and earnings than Claros Mortgage Trust. Claros Mortgage Trust is trading at a lower price-to-earnings ratio than Apollo Commercial Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Apollo Commercial Real Estate Finance has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Apollo Commercial Real Estate Finance and Claros Mortgage Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Apollo Commercial Real Estate Finance | 1 | 3 | 2 | 0 | 2.17 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
Apollo Commercial Real Estate Finance presently has a consensus target price of $11.33, indicating a potential upside of 65.33%. Claros Mortgage Trust has a consensus target price of $2.22, indicating a potential upside of 46.31%. Given Apollo Commercial Real Estate Finance’s stronger consensus rating and higher probable upside, equities analysts clearly believe Apollo Commercial Real Estate Finance is more favorable than Claros Mortgage Trust.
Profitability
This table compares Apollo Commercial Real Estate Finance and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Apollo Commercial Real Estate Finance | 55.49% | 7.39% | 1.58% |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
Summary
Apollo Commercial Real Estate Finance beats Claros Mortgage Trust on 12 of the 14 factors compared between the two stocks.
About Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
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.
Receive News & Ratings for Apollo Commercial Real Estate Finance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Apollo Commercial Real Estate Finance and related companies with MarketBeat.com's FREE daily email newsletter.
