Critical Comparison: Altisource Portfolio Solutions (NASDAQ:ASPS) vs. New York Mortgage Trust (NASDAQ:NYMT)

Altisource Portfolio Solutions (NASDAQ:ASPS) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Altisource Portfolio Solutions	-4.10%	N/A	-8.68%
New York Mortgage Trust	12.50%	7.59%	0.69%

Analyst Ratings

This is a breakdown of recent ratings for Altisource Portfolio Solutions and New York Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altisource Portfolio Solutions	0	0	0	0	0.00
New York Mortgage Trust	0	1	2	0	2.67

New York Mortgage Trust has a consensus price target of $7.75, suggesting a potential upside of 13.30%. Given New York Mortgage Trust’s stronger consensus rating and higher possible upside, analysts plainly believe New York Mortgage Trust is more favorable than Altisource Portfolio Solutions.

Volatility and Risk

Altisource Portfolio Solutions has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Insider and Institutional Ownership

41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 54.9% of New York Mortgage Trust shares are owned by institutional investors. 2.3% of Altisource Portfolio Solutions shares are owned by company insiders. Comparatively, 1.7% of New York 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.

Valuation & Earnings

This table compares Altisource Portfolio Solutions and New York Mortgage Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altisource Portfolio Solutions	$160.13 million	0.72	-$35.64 million	($4.36)	-2.41
New York Mortgage Trust	$273.96 million	2.25	-$62.03 million	$0.19	36.00

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

Summary

New York Mortgage Trust beats Altisource Portfolio Solutions on 12 of the 14 factors compared between the two stocks.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.

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.