Critical Analysis: Altisource Portfolio Solutions (NASDAQ:ASPS) versus BrightSpire Capital (NYSE:BRSP)

Altisource Portfolio Solutions (NASDAQ:ASPS) and BrightSpire Capital (NYSE:BRSP) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Altisource Portfolio Solutions and BrightSpire Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altisource Portfolio Solutions	1	0	0	0	1.00
BrightSpire Capital	1	1	5	0	2.57

BrightSpire Capital has a consensus target price of $6.60, suggesting a potential upside of 15.49%. Given BrightSpire Capital’s stronger consensus rating and higher possible upside, analysts clearly believe BrightSpire Capital is more favorable than Altisource Portfolio Solutions.

Profitability

This table compares Altisource Portfolio Solutions and BrightSpire Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altisource Portfolio Solutions	0.04%	N/A	-3.73%
BrightSpire Capital	-23.82%	7.28%	2.06%

Volatility & Risk

Altisource Portfolio Solutions has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, BrightSpire Capital has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Earnings & Valuation

This table compares Altisource Portfolio Solutions and BrightSpire Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altisource Portfolio Solutions	$160.13 million	0.36	-$35.64 million	($1.94)	-2.73
BrightSpire Capital	$321.12 million	2.29	-$131.98 million	($0.26)	-21.98

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

Institutional & Insider Ownership

41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 56.6% of BrightSpire Capital shares are owned by institutional investors. 2.3% of Altisource Portfolio Solutions shares are owned by company insiders. Comparatively, 2.4% of BrightSpire Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

BrightSpire Capital beats Altisource Portfolio Solutions on 11 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 BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.