Ladder Capital (NYSE: LADR) is one of 32 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its rivals? We will compare Ladder Capital to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.
Earnings and Valuation
This table compares Ladder Capital and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Ladder Capital||$399.68 million||$66.72 million||11.04|
|Ladder Capital Competitors||$371.19 million||$190.39 million||1.12|
Ladder Capital has higher revenue, but lower earnings than its rivals. Ladder Capital is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
46.2% of Ladder Capital shares are held by institutional investors. Comparatively, 56.9% of shares of all “Mortgage REITs” companies are held by institutional investors. 12.5% of Ladder Capital shares are held by company insiders. Comparatively, 3.4% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Ladder Capital and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ladder Capital Competitors||55.57%||9.79%||1.94%|
Ladder Capital pays an annual dividend of $1.26 per share and has a dividend yield of 9.4%. Ladder Capital pays out 103.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.1% and pay out 90.3% of their earnings in the form of a dividend. Ladder Capital has increased its dividend for 2 consecutive years. Ladder Capital lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility & Risk
Ladder Capital has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Ladder Capital’s rivals have a beta of 0.64, meaning that their average stock price is 36% less volatile than the S&P 500.
This is a summary of recent ratings for Ladder Capital and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ladder Capital Competitors||121||873||900||35||2.44|
Ladder Capital presently has a consensus target price of $16.25, suggesting a potential upside of 20.64%. As a group, “Mortgage REITs” companies have a potential upside of 6.68%. Given Ladder Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Ladder Capital is more favorable than its rivals.
Ladder Capital beats its rivals on 8 of the 15 factors compared.
About Ladder Capital
Ladder Capital Corp is a commercial real estate finance company. The Company’s segments include loans, securities, real estate and corporate/other. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment consists of all of its activities related to commercial real estate securities, which include investments in commercial mortgage-backed securities (CMBS) and United States Agency Securities. The real estate segment includes net leased properties, office buildings, a warehouse and condominium units. The Corporate/other segment includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company invests primarily in loans, securities and other interests in the United States commercial real estate, with a focus on senior secured assets.
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