Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) and American Strategic Investment (NYSE:NYC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Dividends
Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.8%. American Strategic Investment pays an annual dividend of $0.40 per share and has a dividend yield of 3.4%. Blackstone Mortgage Trust pays out -160.7% of its earnings in the form of a dividend. American Strategic Investment pays out -0.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Blackstone Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
64.2% of Blackstone Mortgage Trust shares are held by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are held by institutional investors. 0.9% of Blackstone Mortgage Trust shares are held by company insiders. Comparatively, 1.4% of American Strategic Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackstone Mortgage Trust | $493.18 million | 6.08 | -$204.09 million | ($1.17) | -14.95 |
| American Strategic Investment | $61.57 million | 0.50 | -$105.92 million | ($55.88) | -0.21 |
American Strategic Investment has lower revenue, but higher earnings than Blackstone Mortgage Trust. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than American Strategic Investment, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Blackstone Mortgage Trust has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.
Profitability
This table compares Blackstone Mortgage Trust and American Strategic Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Mortgage Trust | -11.54% | 8.62% | 1.57% |
| American Strategic Investment | -334.85% | -17.68% | -4.58% |
Analyst Recommendations
This is a summary of current recommendations for Blackstone Mortgage Trust and American Strategic Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Mortgage Trust | 0 | 4 | 3 | 0 | 2.43 |
| American Strategic Investment | 0 | 0 | 0 | 0 | 0.00 |
Blackstone Mortgage Trust presently has a consensus price target of $20.75, indicating a potential upside of 18.66%. Given Blackstone Mortgage Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Blackstone Mortgage Trust is more favorable than American Strategic Investment.
Summary
Blackstone Mortgage Trust beats American Strategic Investment on 13 of the 16 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.
About American Strategic Investment
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
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