Contrasting Equinix (NASDAQ:EQIX) & New York Mortgage Trust (NASDAQ:NYMT)

New York Mortgage Trust (NASDAQ:NYMT) and Equinix (NASDAQ:EQIX) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for New York Mortgage Trust and Equinix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Mortgage Trust	0	2	1	0	2.33
Equinix	0	6	7	1	2.64

New York Mortgage Trust currently has a consensus price target of $9.88, suggesting a potential upside of 60.57%. Equinix has a consensus price target of $870.44, suggesting a potential upside of 22.27%. Given New York Mortgage Trust’s higher probable upside, research analysts plainly believe New York Mortgage Trust is more favorable than Equinix.

Dividends

New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.0%. Equinix pays an annual dividend of $17.04 per share and has a dividend yield of 2.4%. New York Mortgage Trust pays out -43.2% of its earnings in the form of a dividend. Equinix pays out 165.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has increased its dividend for 8 consecutive years. New York Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares New York Mortgage Trust and Equinix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New York Mortgage Trust	-44.65%	-2.60%	-0.40%
Equinix	11.84%	8.01%	3.05%

Volatility & Risk

New York Mortgage Trust has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Equinix has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Earnings and Valuation

This table compares New York Mortgage Trust and Equinix’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New York Mortgage Trust	$258.66 million	2.17	-$48.67 million	($1.85)	-3.32
Equinix	$8.19 billion	8.23	$969.18 million	$10.31	69.05

Equinix has higher revenue and earnings than New York Mortgage Trust. New York Mortgage Trust is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

54.9% of New York Mortgage Trust shares are owned by institutional investors. Comparatively, 94.9% of Equinix shares are owned by institutional investors. 1.2% of New York Mortgage Trust shares are owned by insiders. Comparatively, 0.3% of Equinix shares are owned by 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.

Summary

Equinix beats New York Mortgage Trust on 13 of the 18 factors compared between the two stocks.

About New York Mortgage Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company also qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.