Critical Analysis: SOHO China (OTCMKTS:SOHOF) and Angel Oak Mortgage REIT (NYSE:AOMR)

SOHO China (OTCMKTS:SOHOF) and Angel Oak Mortgage REIT (NYSE:AOMR) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

80.2% of Angel Oak Mortgage REIT shares are held by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for SOHO China and Angel Oak Mortgage REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOHO China	0	0	0	0	N/A
Angel Oak Mortgage REIT	0	2	1	0	2.33

Angel Oak Mortgage REIT has a consensus target price of $11.00, indicating a potential upside of 3.09%. Given Angel Oak Mortgage REIT’s higher probable upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than SOHO China.

Valuation & Earnings

This table compares SOHO China and Angel Oak Mortgage REIT’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOHO China	N/A	N/A	N/A	N/A	N/A
Angel Oak Mortgage REIT	$95.95 million	2.76	$33.71 million	$1.35	7.87

Angel Oak Mortgage REIT has higher revenue and earnings than SOHO China.

Profitability

This table compares SOHO China and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SOHO China	N/A	N/A	N/A
Angel Oak Mortgage REIT	35.14%	-12.35%	-1.24%

Volatility and Risk

SOHO China has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500.

Summary

Angel Oak Mortgage REIT beats SOHO China on 7 of the 9 factors compared between the two stocks.

About SOHO China

SOHO China Limited, together with its subsidiaries, engages in the real estate development, and property leasing and management activities in the People's Republic of China. The company also operates serviced hotels. SOHO China Limited was founded in 1995 and is headquartered in Beijing, China.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 incorporated in 2018 and is headquartered in Atlanta, Georgia.