Head to Head Review: Ellington Residential Mortgage REIT (NYSE:EARN) & New York Mortgage Trust (NASDAQ:NYMTN)

Ellington Residential Mortgage REIT (NYSE:EARN) and New York Mortgage Trust (NASDAQ:NYMTN) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

This table compares Ellington Residential Mortgage REIT 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
Ellington Residential Mortgage REIT	$20.19 million	4.79	-$30.20 million	$0.39	15.64
New York Mortgage Trust	$215.37 million	N/A	N/A	N/A	N/A

New York Mortgage Trust has higher revenue and earnings than Ellington Residential Mortgage REIT.

Dividends

Ellington Residential Mortgage REIT pays an annual dividend of $0.96 per share and has a dividend yield of 15.7%. New York Mortgage Trust pays an annual dividend of $2.00 per share and has a dividend yield of 10.3%. Ellington Residential Mortgage REIT pays out 246.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Ellington Residential 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
Ellington Residential Mortgage REIT	N/A	10.28%	1.08%
New York Mortgage Trust	N/A	N/A	N/A

Insider and Institutional Ownership

18.4% of Ellington Residential Mortgage REIT shares are held by institutional investors. 2.5% of Ellington Residential Mortgage REIT 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ellington Residential Mortgage REIT and New York Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ellington Residential Mortgage REIT	0	1	0	0	2.00
New York Mortgage Trust	0	0	0	0	N/A

Ellington Residential Mortgage REIT presently has a consensus target price of $7.50, suggesting a potential upside of 22.95%. Given Ellington Residential Mortgage REIT’s higher probable upside, equities research analysts clearly believe Ellington Residential Mortgage REIT is more favorable than New York Mortgage Trust.

Summary

Ellington Residential Mortgage REIT beats New York Mortgage Trust on 6 of the 8 factors compared between the two stocks.

About Ellington Residential Mortgage REIT

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. Ellington Residential Mortgage REIT was incorporated in 2012 and is based in Old Greenwich, Connecticut.

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 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 2003 and is headquartered in New York, New York.