New York Mortgage Trust (NASDAQ:NYMT – Get Free Report) and Paramount Group (NYSE:PGRE – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation & Earnings
This table compares New York Mortgage Trust and Paramount Group’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New York Mortgage Trust | $258.66 million | 2.13 | -$48.67 million | ($1.85) | -3.26 |
| Paramount Group | $742.79 million | 1.36 | -$259.74 million | ($1.16) | -4.00 |
New York Mortgage Trust has higher earnings, but lower revenue than Paramount Group. Paramount Group is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New York Mortgage Trust | 0 | 2 | 1 | 0 | 2.33 |
| Paramount Group | 2 | 2 | 1 | 0 | 1.80 |
New York Mortgage Trust presently has a consensus target price of $8.00, indicating a potential upside of 32.45%. Paramount Group has a consensus target price of $4.60, indicating a potential downside of 0.86%. Given New York Mortgage Trust’s stronger consensus rating and higher probable upside, analysts plainly believe New York Mortgage Trust is more favorable than Paramount Group.
Risk and Volatility
New York Mortgage Trust has a beta of 1.91, meaning that its stock price is 91% more volatile than the S&P 500. Comparatively, Paramount Group has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.
Profitability
This table compares New York Mortgage Trust and Paramount Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New York Mortgage Trust | -44.65% | -2.60% | -0.40% |
| Paramount Group | -33.85% | -6.01% | -3.09% |
Institutional and Insider Ownership
54.9% of New York Mortgage Trust shares are held by institutional investors. Comparatively, 65.6% of Paramount Group shares are held by institutional investors. 1.5% of New York Mortgage Trust shares are held by company insiders. Comparatively, 13.5% of Paramount Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.2%. Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 3.0%. New York Mortgage Trust pays out -43.2% of its earnings in the form of a dividend. Paramount Group pays out -12.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. New York Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
New York Mortgage Trust beats Paramount Group on 10 of the 15 factors compared between the two stocks.
About New York Mortgage Trust
New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company also 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. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.
About Paramount Group
Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
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