Critical Survey: Granite Point Mortgage Trust (NYSE:GPMT) vs. Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY)

Granite Point Mortgage Trust (NYSE:GPMT) and Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Valuation and Earnings

This table compares Granite Point Mortgage Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$263.73 million	0.64	-$63.20 million	($3.86)	-0.88
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	N/A	$188.70 million	$0.62	6.13

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than Cyrela Brazil Realty S.A. Empreendimentos e Participações, indicating that it is currently the more affordable of the two stocks.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 5.9%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.15 per share and has a dividend yield of 3.9%. Granite Point Mortgage Trust pays out -5.2% of its earnings in the form of a dividend. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Granite Point Mortgage Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-87.21%	0.95%	0.27%
Cyrela Brazil Realty S.A. Empreendimentos e Participações	17.34%	14.08%	6.72%

Risk and Volatility

Granite Point Mortgage Trust has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. 2.3% of Granite Point Mortgage Trust shares are owned 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Granite Point Mortgage Trust and Cyrela Brazil Realty S.A. Empreendimentos e Participações, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	1	1	2	0	2.25
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	0.00

Granite Point Mortgage Trust currently has a consensus price target of $5.08, indicating a potential upside of 49.95%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than Cyrela Brazil Realty S.A. Empreendimentos e Participações.

Summary

Granite Point Mortgage Trust beats Cyrela Brazil Realty S.A. Empreendimentos e Participações on 8 of the 15 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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 founded in 2015 and is headquartered in New York, New York.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.