BrightSpire Capital (NYSE:BRSP) & AG Mortgage Investment Trust (NYSE:MITT) Head to Head Contrast

AG Mortgage Investment Trust (NYSE:MITT) and BrightSpire Capital (NYSE:BRSP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares AG Mortgage Investment Trust and BrightSpire Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AG Mortgage Investment Trust	$480.33 million	0.49	$48.67 million	$0.88	8.46
BrightSpire Capital	$322.54 million	2.18	-$31.15 million	($0.26)	-21.06

AG Mortgage Investment Trust has higher revenue and earnings than BrightSpire Capital. BrightSpire Capital is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AG Mortgage Investment Trust has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, BrightSpire Capital has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Profitability

This table compares AG Mortgage Investment Trust and BrightSpire Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AG Mortgage Investment Trust	10.13%	14.42%	0.59%
BrightSpire Capital	-23.82%	7.28%	2.06%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AG Mortgage Investment Trust and BrightSpire Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AG Mortgage Investment Trust	0	3	5	0	2.63
BrightSpire Capital	2	0	5	0	2.43

AG Mortgage Investment Trust presently has a consensus price target of $9.25, indicating a potential upside of 24.21%. BrightSpire Capital has a consensus price target of $6.60, indicating a potential upside of 20.55%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts clearly believe AG Mortgage Investment Trust is more favorable than BrightSpire Capital.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $0.92 per share and has a dividend yield of 12.4%. BrightSpire Capital pays an annual dividend of $0.64 per share and has a dividend yield of 11.7%. AG Mortgage Investment Trust pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BrightSpire Capital pays out -246.2% of its earnings in the form of a dividend. AG Mortgage Investment Trust has increased its dividend for 2 consecutive years. AG Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

27.3% of AG Mortgage Investment Trust shares are held by institutional investors. Comparatively, 56.6% of BrightSpire Capital shares are held by institutional investors. 3.2% of AG Mortgage Investment Trust shares are held by company insiders. Comparatively, 2.4% of BrightSpire Capital shares are held by company 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

AG Mortgage Investment Trust beats BrightSpire Capital on 12 of the 16 factors compared between the two stocks.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.

About BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.