Critical Comparison: Ladder Capital (NYSE:LADR) & Bimini Capital Management (OTCMKTS:BMNM)

Ladder Capital (NYSE:LADR) and Bimini Capital Management (OTCMKTS:BMNM) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Ladder Capital and Bimini Capital Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ladder Capital	20.05%	7.07%	2.24%
Bimini Capital Management	-4.70%	-8.69%	-0.44%

Analyst Ratings

This is a breakdown of current recommendations for Ladder Capital and Bimini Capital Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ladder Capital	0	0	2	1	3.33
Bimini Capital Management	0	0	0	0	0.00

Ladder Capital presently has a consensus target price of $12.75, indicating a potential upside of 14.25%. Given Ladder Capital’s stronger consensus rating and higher possible upside, equities analysts clearly believe Ladder Capital is more favorable than Bimini Capital Management.

Institutional and Insider Ownership

62.3% of Ladder Capital shares are owned by institutional investors. 12.0% of Ladder Capital shares are owned by insiders. Comparatively, 45.4% of Bimini Capital Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Ladder Capital has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Bimini Capital Management has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ladder Capital and Bimini Capital Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ladder Capital	$506.84 million	2.81	$108.25 million	$0.70	15.94
Bimini Capital Management	$11.90 million	1.02	-$1.31 million	($0.06)	-20.00

Ladder Capital has higher revenue and earnings than Bimini Capital Management. Bimini Capital Management is trading at a lower price-to-earnings ratio than Ladder Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Ladder Capital beats Bimini Capital Management on 14 of the 15 factors compared between the two stocks.

About Ladder Capital

Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. It operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities, U.S. treasury and agency, corporate bonds, and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. 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 founded in 2008 and is headquartered in New York, New York.

About Bimini Capital Management

Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.