Altisource Portfolio Solutions (NASDAQ:ASPS – Get Free Report) and NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Altisource Portfolio Solutions and NexPoint Real Estate Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Altisource Portfolio Solutions | 1 | 0 | 0 | 0 | 1.00 |
| NexPoint Real Estate Finance | 0 | 3 | 0 | 0 | 2.00 |
NexPoint Real Estate Finance has a consensus target price of $14.50, suggesting a potential downside of 2.52%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher possible upside, analysts clearly believe NexPoint Real Estate Finance is more favorable than Altisource Portfolio Solutions.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Altisource Portfolio Solutions | $160.13 million | 0.36 | -$35.64 million | ($1.94) | -2.73 |
| NexPoint Real Estate Finance | $72.51 million | 3.64 | $29.19 million | $2.81 | 5.29 |
NexPoint Real Estate Finance has lower revenue, but higher earnings than Altisource Portfolio Solutions. Altisource Portfolio Solutions is trading at a lower price-to-earnings ratio than NexPoint Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Altisource Portfolio Solutions and NexPoint Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Altisource Portfolio Solutions | 0.04% | N/A | -3.73% |
| NexPoint Real Estate Finance | 102.28% | 17.52% | 1.14% |
Volatility & Risk
Altisource Portfolio Solutions has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, NexPoint Real Estate Finance has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Insider & Institutional Ownership
41.4% of Altisource Portfolio Solutions shares are held by institutional investors. Comparatively, 67.8% of NexPoint Real Estate Finance shares are held by institutional investors. 2.3% of Altisource Portfolio Solutions shares are held by insiders. Comparatively, 54.0% of NexPoint Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
NexPoint Real Estate Finance beats Altisource Portfolio Solutions on 12 of the 13 factors compared between the two stocks.
About Altisource Portfolio Solutions
Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.
About NexPoint Real Estate Finance
NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.
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