Analyzing Invesco Mortgage Capital (IVR) and Manhattan Bridge Capital (LOAN)
Manhattan Bridge Capital (NASDAQ: LOAN) and Invesco Mortgage Capital (NYSE:IVR) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Valuation and Earnings
This table compares Manhattan Bridge Capital and Invesco Mortgage Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Manhattan Bridge Capital||$4.65 million||10.67||$2.83 million||$0.40||15.30|
|Invesco Mortgage Capital||$456.86 million||3.91||$254.41 million||$3.18||5.03|
This is a breakdown of current ratings for Manhattan Bridge Capital and Invesco Mortgage Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manhattan Bridge Capital||0||0||2||0||3.00|
|Invesco Mortgage Capital||0||3||2||0||2.40|
Manhattan Bridge Capital currently has a consensus price target of $7.38, indicating a potential upside of 20.51%. Invesco Mortgage Capital has a consensus price target of $18.08, indicating a potential upside of 12.95%. Given Manhattan Bridge Capital’s stronger consensus rating and higher probable upside, equities analysts clearly believe Manhattan Bridge Capital is more favorable than Invesco Mortgage Capital.
This table compares Manhattan Bridge Capital and Invesco Mortgage Capital’s 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%|
|Invesco Mortgage Capital||66.86%||9.06%||1.09%|
Risk & Volatility
Manhattan Bridge Capital has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Invesco Mortgage Capital has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
Institutional and Insider Ownership
13.0% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 72.7% of Invesco Mortgage Capital shares are owned by institutional investors. 32.3% of Manhattan Bridge Capital shares are owned by insiders. Comparatively, 0.3% of Invesco Mortgage Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Manhattan Bridge Capital pays an annual dividend of $0.44 per share and has a dividend yield of 7.2%. Invesco Mortgage Capital pays an annual dividend of $1.68 per share and has a dividend yield of 10.5%. Manhattan Bridge Capital pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invesco Mortgage Capital pays out 52.8% of its earnings in the form of a dividend. Invesco Mortgage Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Manhattan Bridge Capital beats Invesco Mortgage Capital on 8 of the 15 factors compared between the two stocks.
Manhattan Bridge Capital Company Profile
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.
Invesco Mortgage Capital Company Profile
Invesco Mortgage Capital Inc. is a holding company, which conducts its businesses through IAS Operating Partnership LP (the Operating Partnership) and subsidiaries. The Company’s objective is to provide risk-adjusted returns to its investors through dividends and through capital appreciation. It invests in residential mortgage-backed securities that are guaranteed by the United States Government agency, such as the Government National Mortgage Association or a federally chartered corporation, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (collectively Agency RMBS); RMBS that are not guaranteed by the United States Government agency; Credit risk transfer securities that are unsecured obligations issued by government-sponsored enterprises; commercial mortgage-backed securities; residential and commercial mortgage loans, and other real estate-related financing arrangements. It is externally managed and advised by Invesco Advisers, Inc.
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