Phillips Edison & Company, Inc. (NASDAQ:PECO) & New York Mortgage Trust (NASDAQ:NYMT) Head-To-Head Review

Phillips Edison & Company, Inc. (NASDAQ:PECO) and New York Mortgage Trust (NASDAQ:NYMT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Phillips Edison & Company, Inc. and New York Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phillips Edison & Company, Inc.	9.03%	2.22%	1.18%
New York Mortgage Trust	3.11%	0.48%	0.06%

Valuation & Earnings

This table compares Phillips Edison & Company, Inc. 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
Phillips Edison & Company, Inc.	$610.12 million	7.86	$56.85 million	$0.46	85.00
New York Mortgage Trust	$258.66 million	2.12	-$48.67 million	($0.33)	-18.30

Phillips Edison & Company, Inc. has higher revenue and earnings than New York Mortgage Trust. New York Mortgage Trust is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. Comparatively, 54.9% of New York Mortgage Trust shares are held by institutional investors. 7.9% of Phillips Edison & Company, Inc. shares are held by company insiders. Comparatively, 1.5% of New York Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Phillips Edison & Company, Inc. pays an annual dividend of $1.23 per share and has a dividend yield of 3.1%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.2%. Phillips Edison & Company, Inc. pays out 267.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Mortgage Trust pays out -242.4% of its earnings in the form of a dividend. New York Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Phillips Edison & Company, Inc. and New York Mortgage Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phillips Edison & Company, Inc.	0	4	3	0	2.43
New York Mortgage Trust	0	3	1	0	2.25

Phillips Edison & Company, Inc. presently has a consensus price target of $38.43, suggesting a potential downside of 1.72%. New York Mortgage Trust has a consensus price target of $7.75, suggesting a potential upside of 28.31%. Given New York Mortgage Trust’s higher probable upside, analysts clearly believe New York Mortgage Trust is more favorable than Phillips Edison & Company, Inc..

Volatility & Risk

Phillips Edison & Company, Inc. has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.

Summary

Phillips Edison & Company, Inc. beats New York Mortgage Trust on 11 of the 15 factors compared between the two stocks.

About Phillips Edison & Company, Inc.

Phillips Edison & Company, Inc. (PECO) is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.

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 also 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. New York Mortgage Trust, Inc. was incorporated in 2003 and is headquartered in New York, New York.