Head to Head Comparison: Angel Oak Mortgage REIT (NYSE:AOMR) and Blackstone Mortgage Trust (NYSE:BXMT)

Blackstone Mortgage Trust (NYSE:BXMT) and Angel Oak Mortgage REIT (NYSE:AOMR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Risk & Volatility

Blackstone Mortgage Trust has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Blackstone Mortgage Trust and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackstone Mortgage Trust	-0.83%	5.17%	0.95%
Angel Oak Mortgage REIT	29.42%	4.76%	0.50%

Analyst Recommendations

This is a summary of current ratings for Blackstone Mortgage Trust and Angel Oak Mortgage REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackstone Mortgage Trust	0	4	2	0	2.33
Angel Oak Mortgage REIT	0	1	4	0	2.80

Blackstone Mortgage Trust presently has a consensus target price of $20.00, suggesting a potential upside of 7.21%. Angel Oak Mortgage REIT has a consensus target price of $11.60, suggesting a potential upside of 28.67%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Angel Oak Mortgage REIT is more favorable than Blackstone Mortgage Trust.

Valuation & Earnings

This table compares Blackstone Mortgage Trust and Angel Oak Mortgage REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackstone Mortgage Trust	$1.77 billion	1.81	-$204.09 million	($0.07)	-266.50
Angel Oak Mortgage REIT	$110.43 million	1.92	$28.75 million	$1.50	6.01

Angel Oak Mortgage REIT has lower revenue, but higher earnings than Blackstone Mortgage Trust. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

64.2% of Blackstone Mortgage Trust shares are held by institutional investors. Comparatively, 80.2% of Angel Oak Mortgage REIT shares are held by institutional investors. 1.0% of Blackstone Mortgage Trust shares are held by insiders. Comparatively, 2.9% of Angel Oak Mortgage REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.1%. Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 14.2%. Blackstone Mortgage Trust pays out -2,685.7% of its earnings in the form of a dividend. Angel Oak Mortgage REIT pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Angel Oak Mortgage REIT beats Blackstone Mortgage Trust on 12 of the 16 factors compared between the two stocks.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company 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. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.