Angel Oak Mortgage REIT (NYSE:AOMR – Get Free Report) and Apollo Commercial Real Estate Finance (NYSE:ARI – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Dividends
Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 13.7%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 9.7%. Angel Oak Mortgage REIT pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apollo Commercial Real Estate Finance pays out -714.3% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Angel Oak Mortgage REIT and Apollo Commercial Real Estate Finance”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Angel Oak Mortgage REIT | $57.66 million | 3.86 | $28.75 million | $1.54 | 6.07 |
| Apollo Commercial Real Estate Finance | $303.67 million | 4.70 | -$119.64 million | ($0.14) | -73.32 |
Angel Oak Mortgage REIT has higher earnings, but lower revenue than Apollo Commercial Real Estate Finance. Apollo Commercial Real Estate Finance 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.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Angel Oak Mortgage REIT and Apollo Commercial Real Estate Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angel Oak Mortgage REIT | 1 | 2 | 4 | 0 | 2.43 |
| Apollo Commercial Real Estate Finance | 1 | 3 | 3 | 0 | 2.29 |
Angel Oak Mortgage REIT presently has a consensus target price of $11.60, indicating a potential upside of 24.00%. Apollo Commercial Real Estate Finance has a consensus target price of $10.75, indicating a potential upside of 4.72%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe Angel Oak Mortgage REIT is more favorable than Apollo Commercial Real Estate Finance.
Profitability
This table compares Angel Oak Mortgage REIT and Apollo Commercial Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angel Oak Mortgage REIT | 29.42% | 4.78% | 0.49% |
| Apollo Commercial Real Estate Finance | -1.49% | 8.42% | 1.74% |
Risk and Volatility
Angel Oak Mortgage REIT has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.
Insider and Institutional Ownership
80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by insiders. Comparatively, 0.7% of Apollo Commercial Real Estate Finance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Angel Oak Mortgage REIT beats Apollo Commercial Real Estate Finance on 10 of the 16 factors compared between the two stocks.
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.
About Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
Receive News & Ratings for Angel Oak Mortgage REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Angel Oak Mortgage REIT and related companies with MarketBeat.com's FREE daily email newsletter.
