Ready Capital (NYSE:RC – Get Free Report) and Presidio Property Trust (NASDAQ:SQFT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Volatility & Risk
Ready Capital has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Presidio Property Trust has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Ready Capital and Presidio Property Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ready Capital | 1 | 6 | 1 | 0 | 2.00 |
| Presidio Property Trust | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares Ready Capital and Presidio Property Trust”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ready Capital | $945.81 million | 1.25 | $339.45 million | ($0.70) | -10.03 |
| Presidio Property Trust | $18.35 million | 0.49 | $10.15 million | ($0.51) | -1.21 |
Ready Capital has higher revenue and earnings than Presidio Property Trust. Ready Capital is trading at a lower price-to-earnings ratio than Presidio Property Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
55.9% of Ready Capital shares are held by institutional investors. Comparatively, 38.9% of Presidio Property Trust shares are held by institutional investors. 1.1% of Ready Capital shares are held by insiders. Comparatively, 18.7% of Presidio Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
Ready Capital pays an annual dividend of $1.00 per share and has a dividend yield of 14.2%. Presidio Property Trust pays an annual dividend of $0.02 per share and has a dividend yield of 3.2%. Ready Capital pays out -142.9% of its earnings in the form of a dividend. Presidio Property Trust pays out -3.9% 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. Presidio Property Trust has raised its dividend for 1 consecutive years. Ready Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Ready Capital and Presidio Property Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ready Capital | -11.65% | 7.53% | 1.49% |
| Presidio Property Trust | -28.19% | -24.25% | -8.34% |
Summary
Ready Capital beats Presidio Property Trust on 12 of the 16 factors compared between the two stocks.
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.
About Presidio Property Trust
Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.
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