Critical Analysis: New York Mortgage Trust (NASDAQ:NYMTM) & Angel Oak Mortgage REIT (NYSE:AOMR)

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

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Angel Oak Mortgage REIT and New York Mortgage Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$143.65 million	1.33	$44.02 million	$0.75	10.96
New York Mortgage Trust	$273.96 million	N/A	N/A	N/A	N/A

Angel Oak Mortgage REIT has higher earnings, but lower revenue than New York Mortgage Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	11.85%	7.74%	0.71%
New York Mortgage Trust	N/A	N/A	N/A

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 15.6%. New York Mortgage Trust pays an annual dividend of $1.97 per share and has a dividend yield of 7.7%. Angel Oak Mortgage REIT pays out 170.7% 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 recent ratings and recommmendations for Angel Oak Mortgage REIT and New York Mortgage Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	3	0	2.50
New York Mortgage Trust	0	0	0	0	0.00

Angel Oak Mortgage REIT currently has a consensus price target of $10.06, indicating a potential upside of 22.41%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than New York Mortgage Trust.

Summary

Angel Oak Mortgage REIT beats New York Mortgage Trust on 9 of the 11 factors compared between the two stocks.

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.

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.