New York Mortgage Trust (NASDAQ:NYMTM) and Arbor Realty Trust (NYSE:ABR) Head-To-Head Comparison

Arbor Realty Trust (NYSE:ABR) and New York Mortgage Trust (NASDAQ:NYMTM) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$940.01 million	1.02	$148.80 million	$0.07	73.64
New York Mortgage Trust	$273.96 million	N/A	N/A	N/A	N/A

Arbor Realty Trust has higher revenue and earnings than New York Mortgage Trust.

Dividends

Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 13.2%. New York Mortgage Trust pays an annual dividend of $1.97 per share and has a dividend yield of 7.7%. Arbor Realty Trust pays out 971.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations and price targets for Arbor Realty Trust and New York Mortgage Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	4	1	1	0	1.50
New York Mortgage Trust	0	0	0	0	0.00

Arbor Realty Trust currently has a consensus target price of $6.00, indicating a potential upside of 16.39%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Arbor Realty Trust is more favorable than New York Mortgage Trust.

Institutional & Insider Ownership

57.3% of Arbor Realty Trust shares are owned by institutional investors. 4.2% of Arbor Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	6.24%	7.38%	1.22%
New York Mortgage Trust	N/A	N/A	N/A

Summary

Arbor Realty Trust beats New York Mortgage Trust on 10 of the 11 factors compared between the two stocks.

About Arbor Realty Trust

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.

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.