Analyzing Orchid Island Capital (NYSE:ORC) and New York Mortgage Trust (NASDAQ:NYMTM)

New York Mortgage Trust (NASDAQ:NYMTM) and Orchid Island Capital (NYSE:ORC) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for New York Mortgage Trust and Orchid Island Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Mortgage Trust	0	0	0	0	N/A
Orchid Island Capital	0	1	1	0	2.50

Orchid Island Capital has a consensus target price of $9.50, suggesting a potential upside of 21.95%. Given Orchid Island Capital’s higher probable upside, analysts clearly believe Orchid Island Capital is more favorable than New York Mortgage Trust.

Profitability

This table compares New York Mortgage Trust and Orchid Island Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New York Mortgage Trust	N/A	N/A	N/A
Orchid Island Capital	N/A	-6.36%	-0.68%

Dividends

New York Mortgage Trust pays an annual dividend of $1.97 per share and has a dividend yield of 8.1%. Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 18.5%. Orchid Island Capital pays out -271.7% of its earnings in the form of a dividend.

Institutional and Insider Ownership

32.7% of Orchid Island Capital shares are held by institutional investors. 0.6% of Orchid Island Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares New York Mortgage Trust and Orchid Island Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New York Mortgage Trust	$266.51 million	N/A	N/A	N/A	N/A
Orchid Island Capital	-$21.38 million	-19.30	-$39.23 million	($0.53)	-14.70

New York Mortgage Trust has higher revenue and earnings than Orchid Island Capital.

Summary

Orchid Island Capital beats New York Mortgage Trust on 6 of the 9 factors compared between the two stocks.

About New York Mortgage Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company also 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. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.

About Orchid Island Capital

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.