Manhattan Bridge Capital (LOAN) & CYS Investments (CYS) Head-To-Head Contrast
Manhattan Bridge Capital (NASDAQ: LOAN) and CYS Investments (NYSE:CYS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This is a summary of recent ratings and price targets for Manhattan Bridge Capital and CYS Investments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manhattan Bridge Capital||0||0||2||0||3.00|
Manhattan Bridge Capital presently has a consensus target price of $7.38, suggesting a potential upside of 23.53%. CYS Investments has a consensus target price of $8.25, suggesting a potential upside of 3.51%. Given Manhattan Bridge Capital’s stronger consensus rating and higher probable upside, research analysts clearly believe Manhattan Bridge Capital is more favorable than CYS Investments.
Insider and Institutional Ownership
12.0% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 62.2% of CYS Investments shares are held by institutional investors. 32.3% of Manhattan Bridge Capital shares are held by insiders. Comparatively, 1.0% of CYS Investments shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Manhattan Bridge Capital has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, CYS Investments has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
This table compares Manhattan Bridge Capital and CYS Investments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manhattan Bridge Capital||59.63%||14.43%||8.33%|
Manhattan Bridge Capital pays an annual dividend of $0.41 per share and has a dividend yield of 6.9%. CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 12.5%. Manhattan Bridge Capital pays out 102.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CYS Investments pays out -500.0% of its earnings in the form of a dividend. CYS Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Manhattan Bridge Capital and CYS Investments’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manhattan Bridge Capital||$4.65 million||10.41||$2.83 million||$0.40||14.93|
|CYS Investments||$294.54 million||4.19||$16.39 million||($0.20)||-39.85|
CYS Investments has higher revenue and earnings than Manhattan Bridge Capital. CYS Investments is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.
Manhattan Bridge Capital beats CYS Investments on 11 of the 16 factors compared between the two stocks.
About Manhattan Bridge Capital
Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.
About CYS Investments
CYS Investments, Inc. is a specialty finance company. The Company’s objective is to provide consistent returns to its investors through a combination of dividends and capital appreciation. It invests in agency residential mortgage-backed security (RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period. In addition, it has investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity (GSE) that are collateralized by Agency RMBS. Its investments consist of residential mortgage pass-through securities for which the principal and interest payments are guaranteed by a GSE, such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, or by the United States Government agency, such as Government National Mortgage Association.
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