Rithm Property Trust (NYSE:RPT) and Claros Mortgage Trust (NYSE:CMTG) Head to Head Review

Rithm Property Trust (NYSE:RPT) and Claros Mortgage Trust (NYSE:CMTG) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Risk & Volatility

Rithm Property Trust has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

58.6% of Rithm Property Trust shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 0.4% of Rithm Property Trust shares are held by company insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rithm Property Trust and Claros Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Property Trust	1	0	0	1	2.50
Claros Mortgage Trust	3	1	0	0	1.25

Claros Mortgage Trust has a consensus target price of $2.22, suggesting a potential upside of 24.18%. Given Claros Mortgage Trust’s higher probable upside, analysts plainly believe Claros Mortgage Trust is more favorable than Rithm Property Trust.

Profitability

This table compares Rithm Property Trust and Claros Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Property Trust	5.87%	1.20%	0.29%
Claros Mortgage Trust	-354.13%	-19.70%	-6.52%

Valuation & Earnings

This table compares Rithm Property Trust and Claros Mortgage Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Property Trust	$52.80 million	1.94	$1.47 million	($0.26)	-50.69
Claros Mortgage Trust	$187.83 million	1.34	-$489.07 million	($3.83)	-0.47

Rithm Property Trust has higher earnings, but lower revenue than Claros Mortgage Trust. Rithm Property Trust is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Rithm Property Trust beats Claros Mortgage Trust on 9 of the 14 factors compared between the two stocks.

About Rithm Property Trust

Rithm Property Trust Inc is a real estate investment trust (REIT) externally managed by an affiliate of Rithm Capital Corp. (Rithm). The company focuses on commercial real estate-focused investment, including originating, acquiring and managing portfolios of CMBS, commercial real property, commercial mortgage loans and other CRE investments. It has two reportable operating segments: Residential and Commercial. The majority of the company’s revenue is derived from the Residential segment, which is focused on managing a portfolio that includes residential mortgage assets, including whole mortgage loans, RMBS and beneficial interests.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.