CV (OTCMKTS:CVHL) and Arbor Realty Trust (NYSE:ABR) Head to Head Contrast

CV (OTCMKTS:CVHL) and Arbor Realty Trust (NYSE:ABR) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

57.3% of Arbor Realty Trust shares are owned by institutional investors. 7.6% of CV shares are owned by company insiders. Comparatively, 3.8% of Arbor Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for CV and Arbor Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV	0	0	0	0	0.00
Arbor Realty Trust	4	2	1	0	1.57

Arbor Realty Trust has a consensus target price of $9.38, suggesting a potential upside of 20.12%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Arbor Realty Trust is more favorable than CV.

Volatility and Risk

CV has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Arbor Realty Trust has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Earnings and Valuation

This table compares CV and Arbor Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A
Arbor Realty Trust	$1.17 billion	1.31	$264.64 million	$0.80	9.76

Arbor Realty Trust has higher revenue and earnings than CV.

Profitability

This table compares CV and Arbor Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CV	N/A	N/A	N/A
Arbor Realty Trust	20.07%	11.63%	2.13%

Summary

Arbor Realty Trust beats CV on 9 of the 10 factors compared between the two stocks.

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.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.