Ellington Residential Mortgage REIT (NYSE:EARN) and Tremont Mortgage Trust (NASDAQ:TRMT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
This table compares Ellington Residential Mortgage REIT and Tremont Mortgage Trust’s net margins, return on equity and return on assets.
Volatility & Risk
Ellington Residential Mortgage REIT has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Tremont Mortgage Trust has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
Insider and Institutional Ownership
61.3% of Ellington Residential Mortgage REIT shares are held by institutional investors. Comparatively, 23.5% of Tremont Mortgage Trust shares are held by institutional investors. 2.0% of Ellington Residential Mortgage REIT shares are held by company insiders. Comparatively, 20.0% of Tremont Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Ellington Residential Mortgage REIT and Tremont Mortgage Trust, as provided by MarketBeat.com.
Valuation & Earnings
This table compares Ellington Residential Mortgage REIT and Tremont Mortgage Trust’s gross revenue, earnings per share (EPS) and valuation.
Ellington Residential Mortgage REIT has higher revenue and earnings than Tremont Mortgage Trust.
Ellington Residential Mortgage REIT pays an annual dividend of $1.48 per share and has a dividend yield of 12.9%. Tremont Mortgage Trust does not pay a dividend. Ellington Residential Mortgage REIT pays out 82.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Ellington Residential Mortgage REIT beats Tremont Mortgage Trust on 7 of the 11 factors compared between the two stocks.
Ellington Residential Mortgage REIT Company Profile
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. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Ellington Residential Mortgage REIT was founded in 2012 and is based in Old Greenwich, Connecticut.
Tremont Mortgage Trust Company Profile
Tremont Mortgage Trust, a real estate investment trust (REIT), focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. The company qualifies as a REIT 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 founded in 2017 and is headquartered in Newton, Massachusetts. Tremont Mortgage Trust is a subsidiary of Tremont Realty Advisors LLC.