Critical Comparison: LuxUrban Hotels (NASDAQ:LUXH) vs. Angel Oak Mortgage REIT (NYSE:AOMR)

LuxUrban Hotels (NASDAQ:LUXH) and Angel Oak Mortgage REIT (NYSE:AOMR) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

LuxUrban Hotels has a beta of -1.16, indicating that its stock price is 216% less volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares LuxUrban Hotels and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LuxUrban Hotels	-145.57%	N/A	-29.89%
Angel Oak Mortgage REIT	70.22%	-4.51%	-0.52%

Insider and Institutional Ownership

28.5% of LuxUrban Hotels shares are owned by institutional investors. Comparatively, 80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. 7.0% of LuxUrban Hotels shares are owned by company insiders. Comparatively, 2.5% of Angel Oak Mortgage REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for LuxUrban Hotels and Angel Oak Mortgage REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LuxUrban Hotels	0	2	1	0	2.33
Angel Oak Mortgage REIT	0	3	2	0	2.40

LuxUrban Hotels currently has a consensus price target of $280.00, indicating a potential upside of 23,233.33%. Angel Oak Mortgage REIT has a consensus price target of $12.00, indicating a potential upside of 22.32%. Given LuxUrban Hotels’ higher probable upside, analysts clearly believe LuxUrban Hotels is more favorable than Angel Oak Mortgage REIT.

Earnings & Valuation

This table compares LuxUrban Hotels and Angel Oak Mortgage REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LuxUrban Hotels	$72.79 million	0.04	-$78.52 million	($148.49)	-0.01
Angel Oak Mortgage REIT	$95.95 million	2.40	$33.71 million	$2.94	3.34

Angel Oak Mortgage REIT has higher revenue and earnings than LuxUrban Hotels. LuxUrban Hotels is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Angel Oak Mortgage REIT beats LuxUrban Hotels on 11 of the 14 factors compared between the two stocks.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, 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. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 incorporated in 2018 and is headquartered in Atlanta, Georgia.