Ladder Capital (NYSE: LADR) is one of 32 public companies in the “Mortgage REITs” industry, but how does it weigh in compared to its rivals? We will compare Ladder Capital to similar companies based on the strength of its earnings, analyst recommendations, valuation, risk, institutional ownership, profitability and dividends.

Risk and Volatility

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Ladder Capital has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Ladder Capital’s rivals have a beta of 0.64, indicating that their average stock price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ladder Capital and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ladder Capital 0 0 5 0 3.00
Ladder Capital Competitors 133 889 912 36 2.43

Ladder Capital presently has a consensus target price of $16.25, suggesting a potential upside of 9.72%. As a group, “Mortgage REITs” companies have a potential upside of 11.46%. Given Ladder Capital’s rivals higher possible upside, analysts plainly believe Ladder Capital has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Ladder Capital and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ladder Capital $399.68 million $66.72 million 17.02
Ladder Capital Competitors $371.19 million $190.39 million 1.80

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.

Dividends

Ladder Capital pays an annual dividend of $1.26 per share and has a dividend yield of 8.5%. Ladder Capital pays out 144.8% 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 10.2% and pay out 91.9% of their earnings in the form of a dividend. Ladder Capital lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

46.2% of Ladder Capital shares are owned by institutional investors. Comparatively, 56.3% of shares of all “Mortgage REITs” companies are owned by institutional investors. 12.5% of Ladder Capital shares are owned by insiders. Comparatively, 3.4% of shares of all “Mortgage REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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 27.38% 9.78% 2.40%
Ladder Capital Competitors 54.80% 9.89% 1.97%

Summary

Ladder Capital rivals beat Ladder Capital 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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