Altisource Portfolio Solutions (NASDAQ:ASPS) and Blackstone Mortgage Trust (NYSE:BXMT) Critical Survey

Altisource Portfolio Solutions (NASDAQ:ASPS) and Blackstone Mortgage Trust (NYSE:BXMT) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Altisource Portfolio Solutions and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Altisource Portfolio Solutions	-4.10%	N/A	-8.68%
Blackstone Mortgage Trust	-0.83%	5.17%	0.95%

Earnings and Valuation

This table compares Altisource Portfolio Solutions and Blackstone Mortgage Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altisource Portfolio Solutions	$160.13 million	0.77	-$35.64 million	($4.36)	-2.58
Blackstone Mortgage Trust	$484.81 million	7.10	-$204.09 million	($0.07)	-286.76

Altisource Portfolio Solutions has higher earnings, but lower revenue than Blackstone Mortgage Trust. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than Altisource Portfolio Solutions, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Altisource Portfolio Solutions has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Altisource Portfolio Solutions and Blackstone Mortgage Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altisource Portfolio Solutions	0	0	0	0	0.00
Blackstone Mortgage Trust	0	4	2	0	2.33

Blackstone Mortgage Trust has a consensus target price of $20.00, indicating a potential downside of 0.36%. Given Blackstone Mortgage Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Blackstone Mortgage Trust is more favorable than Altisource Portfolio Solutions.

Institutional & Insider Ownership

41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 64.2% of Blackstone Mortgage Trust shares are owned by institutional investors. 2.3% of Altisource Portfolio Solutions shares are owned by insiders. Comparatively, 1.0% of Blackstone Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Blackstone Mortgage Trust beats Altisource Portfolio Solutions on 11 of the 14 factors compared between the two stocks.

About Altisource Portfolio Solutions

Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.

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.