Claros Mortgage Trust (NYSE:CMTG – Get Rating) and Angel Oak Mortgage (NYSE:AOMR – Get Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Insider and Institutional Ownership
62.3% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 84.3% of Angel Oak Mortgage shares are owned by institutional investors. 2.0% of Claros Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
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Valuation and Earnings
This table compares Claros Mortgage Trust and Angel Oak Mortgage's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Claros Mortgage Trust | $247.01 million | 9.44 | $170.55 million | $1.18 | 14.15 |
| Angel Oak Mortgage | $60.56 million | 5.39 | $21.11 million | ($3.53) | -3.71 |
Claros Mortgage Trust has higher revenue and earnings than Angel Oak Mortgage. Angel Oak Mortgage is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Claros Mortgage Trust and Angel Oak Mortgage's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Claros Mortgage Trust | 62.58% | 6.98% | 2.30% |
| Angel Oak Mortgage | -90.64% | 19.96% | 3.26% |
Dividends
Claros Mortgage Trust pays an annual dividend of $1.48 per share and has a dividend yield of 8.9%. Angel Oak Mortgage pays an annual dividend of $1.80 per share and has a dividend yield of 13.7%. Claros Mortgage Trust pays out 125.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Angel Oak Mortgage pays out -51.0% of its earnings in the form of a dividend. Angel Oak Mortgage is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent recommendations for Claros Mortgage Trust and Angel Oak Mortgage, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Claros Mortgage Trust | 0 | 2 | 2 | 0 | 2.50 |
| Angel Oak Mortgage | 0 | 2 | 2 | 0 | 2.50 |
Claros Mortgage Trust currently has a consensus target price of $19.40, suggesting a potential upside of 16.17%. Angel Oak Mortgage has a consensus target price of $16.17, suggesting a potential upside of 23.41%. Given Angel Oak Mortgage's higher possible upside, analysts plainly believe Angel Oak Mortgage is more favorable than Claros Mortgage Trust.
Summary
Claros Mortgage Trust beats Angel Oak Mortgage on 7 of the 13 factors compared between the two stocks.
About Claros Mortgage Trust
(Get Rating)
Claros Mortgage Trust, Inc. is a real estate investment trust that focuses primarily on originating senior and subordinate loans on transitional commercial real estate assets located in principal markets across the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. The company was incorporated in 2015 and is based in New York, New York.
About Angel Oak Mortgage
(Get Rating)
Angel Oak Mortgage, 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. 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. Angel Oak Mortgage, Inc. was incorporated in 2018 and is headquartered in Atlanta, Georgia.
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