Financial Contrast: New York Mortgage Trust (NASDAQ:NYMTZ) & Rithm Capital (NYSE:RITM)

Rithm Capital (NYSE:RITM) and New York Mortgage Trust (NASDAQ:NYMTZ) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

44.9% of Rithm Capital shares are held by institutional investors. 0.4% of Rithm Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	15.55%	18.20%	2.89%
New York Mortgage Trust	N/A	N/A	N/A

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 8.6%. New York Mortgage Trust pays an annual dividend of $1.75 per share and has a dividend yield of 9.3%. Rithm Capital pays out 66.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Rithm Capital and New York Mortgage Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$2.44 billion	2.29	$622.26 million	$1.50	7.71
New York Mortgage Trust	$266.51 million	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Rithm Capital and New York Mortgage Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	9	0	2.90
New York Mortgage Trust	0	0	0	0	N/A

Rithm Capital presently has a consensus price target of $12.55, indicating a potential upside of 8.48%. Given Rithm Capital’s higher possible upside, analysts clearly believe Rithm Capital is more favorable than New York Mortgage Trust.

Summary

Rithm Capital beats New York Mortgage Trust on 8 of the 10 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

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.