SITE Centers (NYSE:SITC – Get Free Report) and Ready Capital (NYSE:RC – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.
Dividends
SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Ready Capital pays an annual dividend of $1.20 per share and has a dividend yield of 13.9%. SITE Centers pays out 51.0% of its earnings in the form of a dividend. Ready Capital pays out 51.3% 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.
Analyst Ratings
This is a summary of current ratings and price targets for SITE Centers and Ready Capital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SITE Centers | 0 | 2 | 2 | 0 | 2.50 |
| Ready Capital | 1 | 3 | 2 | 0 | 2.17 |
Risk and Volatility
SITE Centers has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Ready Capital has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
Profitability
This table compares SITE Centers and Ready Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SITE Centers | 43.36% | 11.83% | 5.66% |
| Ready Capital | 35.69% | 7.99% | 1.54% |
Insider & Institutional Ownership
88.7% of SITE Centers shares are held by institutional investors. Comparatively, 55.9% of Ready Capital shares are held by institutional investors. 10.1% of SITE Centers shares are held by company insiders. Comparatively, 1.0% of Ready Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares SITE Centers and Ready Capital’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SITE Centers | $539.46 million | 5.43 | $265.70 million | $1.02 | 13.71 |
| Ready Capital | $405.64 million | 3.61 | $339.45 million | $2.34 | 3.70 |
Ready Capital has lower revenue, but higher earnings than SITE Centers. Ready Capital is trading at a lower price-to-earnings ratio than SITE Centers, indicating that it is currently the more affordable of the two stocks.
Summary
SITE Centers beats Ready Capital on 11 of the 15 factors compared between the two stocks.
About SITE Centers
SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.
About Ready Capital
Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments. The LMM Commercial Real Estate segment originates LLM loans across the full life-cycle of an LLM property, including construction, bridge, stabilized, and agency loan origination channels. The Small Business Lending segment acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program; and acquires purchased future receivables. The company has elected to be taxed as a real estate investment trust (REIT) and 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 formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.
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