Analyzing New York Mortgage Trust (NASDAQ:NYMT) and Kimco Realty (NYSE:KIM)

New York Mortgage Trust (NASDAQ:NYMT) and Kimco Realty (NYSE:KIM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares New York Mortgage Trust and Kimco Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New York Mortgage Trust	$241.49 million	2.00	-$48.67 million	($1.14)	-4.67
Kimco Realty	$2.04 billion	6.60	$410.79 million	$0.56	35.33

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

Insider and Institutional Ownership

54.9% of New York Mortgage Trust shares are held by institutional investors. Comparatively, 89.3% of Kimco Realty shares are held by institutional investors. 1.5% of New York Mortgage Trust shares are held by company insiders. Comparatively, 2.2% of Kimco Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for New York Mortgage Trust and Kimco Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New York Mortgage Trust	0	3	1	0	2.25
Kimco Realty	0	9	4	2	2.53

New York Mortgage Trust currently has a consensus price target of $7.00, suggesting a potential upside of 31.58%. Kimco Realty has a consensus price target of $24.75, suggesting a potential upside of 25.09%. Given New York Mortgage Trust’s higher possible upside, equities research analysts clearly believe New York Mortgage Trust is more favorable than Kimco Realty.

Dividends

New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 15.0%. Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 5.1%. New York Mortgage Trust pays out -70.2% of its earnings in the form of a dividend. Kimco Realty pays out 178.6% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

New York Mortgage Trust has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Kimco Realty has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares New York Mortgage Trust and Kimco Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New York Mortgage Trust	-15.46%	-1.39%	-0.15%
Kimco Realty	20.17%	3.82%	2.07%

Summary

Kimco Realty beats New York Mortgage Trust on 13 of the 17 factors compared between the two stocks.

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.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.