CYS Investments (NYSE: CYS) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
CYS Investments has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Insider and Institutional Ownership
62.8% of CYS Investments shares are held by institutional investors. Comparatively, 36.1% of New York Mortgage Trust shares are held by institutional investors. 1.0% of CYS Investments shares are held by insiders. Comparatively, 1.3% of New York Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 11.4%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 12.5%. CYS Investments pays out -400.0% of its earnings in the form of a dividend. New York Mortgage Trust pays out 156.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares CYS Investments and New York Mortgage Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New York Mortgage Trust||19.62%||10.05%||0.71%|
This is a breakdown of recent ratings and recommmendations for CYS Investments and New York Mortgage Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New York Mortgage Trust||0||3||1||0||2.25|
CYS Investments currently has a consensus price target of $8.00, suggesting a potential downside of 8.88%. New York Mortgage Trust has a consensus price target of $6.42, suggesting a potential upside of 0.57%. Given New York Mortgage Trust’s stronger consensus rating and higher possible upside, analysts plainly believe New York Mortgage Trust is more favorable than CYS Investments.
Valuation & Earnings
This table compares CYS Investments and New York Mortgage Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CYS Investments||$6.14 million||217.00||-$37.94 million||($0.25)||-35.12|
|New York Mortgage Trust||$107.14 million||6.66||$57.06 million||$0.51||12.51|
New York Mortgage Trust has higher revenue and earnings than CYS Investments. CYS Investments is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
New York Mortgage Trust beats CYS Investments on 10 of the 15 factors compared between the two stocks.
CYS Investments Company Profile
CYS Investments, Inc. is a specialty finance company. The Company’s objective is to provide consistent returns to its investors through a combination of dividends and capital appreciation. It invests in agency residential mortgage-backed security (RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period. In addition, it has investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity (GSE) that are collateralized by Agency RMBS. Its investments consist of residential mortgage pass-through securities for which the principal and interest payments are guaranteed by a GSE, such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, or by the United States Government agency, such as Government National Mortgage Association.
New York Mortgage Trust Company Profile
New York Mortgage Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. The Company’s investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets, non-agency residential mortgage-backed securities (RMBS), multi-family commercial mortgage-backed securities, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate and agency RMBS. It may acquire and manage various other types of mortgage-related and financial assets, including, without limitation, collateralized mortgage obligations and securities issued by newly originated residential securitizations, including credit sensitive securities from these securitizations.
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