Reviewing Adamas Trust (NASDAQ:ADAM) and New York Mortgage Trust (NASDAQ:NYMTL)

New York Mortgage Trust (NASDAQ:NYMTL) and Adamas Trust (NASDAQ:ADAM) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for New York Mortgage Trust and Adamas Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Mortgage Trust	0	0	0	0	0.00
Adamas Trust	0	3	1	1	2.60

Adamas Trust has a consensus price target of $9.50, suggesting a potential downside of 0.21%. Given Adamas Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Adamas Trust is more favorable than New York Mortgage Trust.

Valuation and Earnings

This table compares New York Mortgage Trust and Adamas Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New York Mortgage Trust	$273.96 million	N/A	N/A	N/A	N/A
Adamas Trust	$601.95 million	1.42	$149.05 million	$1.68	5.67

Adamas Trust has higher revenue and earnings than New York Mortgage Trust.

Insider and Institutional Ownership

54.9% of Adamas Trust shares are held by institutional investors. 2.0% of Adamas Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

New York Mortgage Trust pays an annual dividend of $1.72 per share and has a dividend yield of 7.0%. Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 11.3%. Adamas Trust pays out 64.3% of its earnings in the form of a dividend.

Profitability

This table compares New York Mortgage Trust and Adamas Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New York Mortgage Trust	N/A	N/A	N/A
Adamas Trust	29.82%	14.72%	1.04%

Summary

Adamas Trust beats New York Mortgage Trust on 11 of the 12 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 Adamas 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, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 2003 and is headquartered in New York, New York.