Comparing Ladder Capital (NYSE:LADR) & CV (OTCMKTS:CVHL)

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

Valuation & Earnings

This table compares Ladder Capital and CV”s gross 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	2.73	$108.25 million	$0.70	15.52
CV	$25.67 million	0.03	-$18.15 million	N/A	N/A

Ladder Capital has higher revenue and earnings than CV.

Volatility & Risk

Ladder Capital has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, CV has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Ladder Capital and CV’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%
CV	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ladder Capital and CV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ladder Capital	0	0	1	1	3.50
CV	0	0	0	0	0.00

Ladder Capital currently has a consensus price target of $12.00, suggesting a potential upside of 10.45%. Given Ladder Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Ladder Capital is more favorable than CV.

Insider and Institutional Ownership

62.3% of Ladder Capital shares are owned by institutional investors. 12.0% of Ladder Capital shares are owned by insiders. Comparatively, 7.6% of CV shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Ladder Capital beats CV on 12 of the 13 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 CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.