Arbor Realty Trust (ABR) versus The Competition Critical Review

Arbor Realty Trust (NYSE:ABR) is one of 52 public companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it compare to its rivals? We will compare Arbor Realty Trust to related businesses based on the strength of its institutional ownership, risk, earnings, analyst recommendations, valuation, profitability and dividends.

Dividends

Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 42.1%. Arbor Realty Trust pays out -106.2% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 16.4% and pay out -110.6% of their earnings in the form of a dividend.

Risk & Volatility

Arbor Realty Trust has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Arbor Realty Trust’s rivals have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Insider and Institutional Ownership

57.3% of Arbor Realty Trust shares are held by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by institutional investors. 4.2% of Arbor Realty Trust shares are held by company insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Arbor Realty Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	-7.96%	3.98%	0.62%
Arbor Realty Trust Competitors	-9.73%	7.41%	1.01%

Earnings & Valuation

This table compares Arbor Realty Trust and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Arbor Realty Trust	$940.01 million	$148.80 million	-2.53
Arbor Realty Trust Competitors	$762.88 million	$157.00 million	19.65

Arbor Realty Trust has higher revenue, but lower earnings than its rivals. Arbor Realty Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and target prices for Arbor Realty Trust and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	4	2	0	0	1.33
Arbor Realty Trust Competitors	686	1986	2136	136	2.35

Arbor Realty Trust presently has a consensus price target of $5.12, suggesting a potential upside of 216.94%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 43.49%. Given Arbor Realty Trust’s higher possible upside, research analysts clearly believe Arbor Realty Trust is more favorable than its rivals.

Summary

Arbor Realty Trust rivals beat Arbor Realty Trust on 9 of the 15 factors compared.

Arbor Realty Trust Company Profile

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.