Comparing BrightSpire Capital (NYSE:BRSP) & Claros Mortgage Trust (NYSE:CMTG)

Claros Mortgage Trust (NYSE:CMTG) and BrightSpire Capital (NYSE:BRSP) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Claros Mortgage Trust and BrightSpire Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$187.83 million	1.22	-$489.07 million	($3.83)	-0.42
BrightSpire Capital	$194.89 million	3.04	-$31.15 million	($0.23)	-20.39

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

Institutional and Insider Ownership

89.5% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 56.6% of BrightSpire Capital shares are held by institutional investors. 2.6% of Claros Mortgage Trust shares are held by company insiders. Comparatively, 2.8% of BrightSpire Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Claros Mortgage Trust and BrightSpire Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	1	0	0	1.25
BrightSpire Capital	2	0	4	0	2.33

Claros Mortgage Trust currently has a consensus target price of $2.22, suggesting a potential upside of 36.83%. BrightSpire Capital has a consensus target price of $6.50, suggesting a potential upside of 38.59%. Given BrightSpire Capital’s stronger consensus rating and higher probable upside, analysts clearly believe BrightSpire Capital is more favorable than Claros Mortgage Trust.

Profitability

This table compares Claros Mortgage Trust and BrightSpire Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-354.13%	-19.70%	-6.52%
BrightSpire Capital	-20.43%	7.01%	1.80%

Volatility and Risk

Claros Mortgage Trust has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, BrightSpire Capital has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

BrightSpire Capital beats Claros Mortgage Trust on 12 of the 14 factors compared between the two stocks.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.

About BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. The company 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. The company was formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.