Altisource Portfolio Solutions (NASDAQ:ASPS) versus AG Mortgage Investment Trust (NYSE:MITT) Head-To-Head Review

AG Mortgage Investment Trust (NYSE:MITT) and Altisource Portfolio Solutions (NASDAQ:ASPS) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares AG Mortgage Investment Trust and Altisource Portfolio Solutions’ 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%
Altisource Portfolio Solutions	0.04%	N/A	-3.73%

Insider and Institutional Ownership

27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. 3.8% of AG Mortgage Investment Trust shares are owned by company insiders. Comparatively, 2.3% of Altisource Portfolio Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

AG Mortgage Investment Trust has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Altisource Portfolio Solutions has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.

Earnings & Valuation

This table compares AG Mortgage Investment Trust and Altisource Portfolio Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AG Mortgage Investment Trust	$480.33 million	0.54	$48.67 million	$0.88	9.24
Altisource Portfolio Solutions	$169.65 million	0.48	-$35.64 million	($1.94)	-3.84

AG Mortgage Investment Trust has higher revenue and earnings than Altisource Portfolio Solutions. Altisource Portfolio Solutions 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.

Analyst Recommendations

This is a breakdown of current ratings for AG Mortgage Investment Trust and Altisource Portfolio Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AG Mortgage Investment Trust	0	3	5	0	2.63
Altisource Portfolio Solutions	1	0	0	0	1.00

AG Mortgage Investment Trust currently has a consensus target price of $9.25, suggesting a potential upside of 13.72%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe AG Mortgage Investment Trust is more favorable than Altisource Portfolio Solutions.

Summary

AG Mortgage Investment Trust beats Altisource Portfolio Solutions on 13 of the 14 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 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.