Granite Point Mortgage Trust (NYSE:GPMT) and TPG RE Finance Trust (NYSE:TRTX) Head to Head Comparison

Granite Point Mortgage Trust (NYSE:GPMT) and TPG RE Finance Trust (NYSE:TRTX) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Granite Point Mortgage Trust and TPG RE Finance Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	2	2	0	0	1.50
TPG RE Finance Trust	0	3	4	0	2.57

Granite Point Mortgage Trust currently has a consensus price target of $1.33, suggesting a potential upside of 48.64%. TPG RE Finance Trust has a consensus price target of $10.00, suggesting a potential upside of 57.85%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts clearly believe TPG RE Finance Trust is more favorable than Granite Point Mortgage Trust.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 22.3%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 15.2%. Granite Point Mortgage Trust pays out -10.0% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Granite Point Mortgage Trust and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-73.75%	-10.25%	-3.37%
TPG RE Finance Trust	17.03%	6.85%	1.66%

Valuation & Earnings

This table compares Granite Point Mortgage Trust and TPG RE Finance Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$131.73 million	0.33	-$41.15 million	($2.01)	-0.45
TPG RE Finance Trust	$332.58 million	1.46	$60.32 million	$0.54	11.73

TPG RE Finance Trust has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

51.6% of Granite Point Mortgage Trust shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 6.4% of Granite Point Mortgage Trust shares are held by company insiders. Comparatively, 3.0% of TPG RE Finance Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Granite Point Mortgage Trust has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Summary

TPG RE Finance Trust beats Granite Point Mortgage Trust on 12 of the 16 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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 founded in 2015 and is headquartered in New York, New York.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. 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. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.