New York Mortgage Trust (NASDAQ:NYMT – Get Free Report) and LXP Industrial Trust (NYSE:LXP – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Dividends
New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.4%. LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.3%. New York Mortgage Trust pays out -43.2% of its earnings in the form of a dividend. LXP Industrial Trust pays out 1,300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
New York Mortgage Trust has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New York Mortgage Trust | $266.51 million | 2.05 | -$48.67 million | ($1.85) | -3.24 |
| LXP Industrial Trust | $340.42 million | 8.48 | $30.38 million | $0.04 | 245.25 |
LXP Industrial Trust has higher revenue and earnings than New York Mortgage Trust. New York Mortgage Trust is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares New York Mortgage Trust and LXP Industrial Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New York Mortgage Trust | -36.43% | -1.98% | -0.26% |
| LXP Industrial Trust | 9.50% | 1.51% | 0.80% |
Insider and Institutional Ownership
54.9% of New York Mortgage Trust shares are held by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are held by institutional investors. 1.5% of New York Mortgage Trust shares are held by insiders. Comparatively, 2.2% of LXP Industrial Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for New York Mortgage Trust and LXP Industrial Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New York Mortgage Trust | 0 | 3 | 1 | 0 | 2.25 |
| LXP Industrial Trust | 0 | 1 | 3 | 0 | 2.75 |
New York Mortgage Trust currently has a consensus target price of $7.75, indicating a potential upside of 29.38%. LXP Industrial Trust has a consensus target price of $11.25, indicating a potential upside of 14.68%. Given New York Mortgage Trust’s higher probable upside, research analysts plainly believe New York Mortgage Trust is more favorable than LXP Industrial Trust.
Summary
LXP Industrial Trust beats New York Mortgage Trust on 12 of the 16 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 LXP Industrial Trust
LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.
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