Impac Mortgage (NYSE:IMH – Get Free Report) and Service Properties Trust (NASDAQ:SVC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Institutional and Insider Ownership
12.5% of Impac Mortgage shares are owned by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are owned by institutional investors. 2.8% of Impac Mortgage shares are owned by company insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Impac Mortgage has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Impac Mortgage | 0 | 0 | 0 | 0 | 0.00 |
| Service Properties Trust | 1 | 0 | 1 | 0 | 2.00 |
Service Properties Trust has a consensus target price of $5.25, indicating a potential upside of 109.16%. Given Service Properties Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Service Properties Trust is more favorable than Impac Mortgage.
Profitability
This table compares Impac Mortgage and Service Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Impac Mortgage | N/A | -1,309.14% | -37.12% |
| Service Properties Trust | -12.87% | -22.67% | -3.37% |
Valuation & Earnings
This table compares Impac Mortgage and Service Properties Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Impac Mortgage | $8.60 million | 0.20 | -$39.43 million | ($1.71) | -0.03 |
| Service Properties Trust | $1.90 billion | 0.22 | -$32.78 million | ($1.67) | -1.50 |
Service Properties Trust has higher revenue and earnings than Impac Mortgage. Service Properties Trust is trading at a lower price-to-earnings ratio than Impac Mortgage, indicating that it is currently the more affordable of the two stocks.
Summary
Service Properties Trust beats Impac Mortgage on 11 of the 14 factors compared between the two stocks.
About Impac Mortgage
Impac Mortgage Holdings, Inc. engages in the provision of mortgage and real estate solutions. It operates through the following segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. The Mortgage Lending segment offers mortgage lending products through lending channels, retail, wholesale, and correspondent, and retains mortgage servicing rights and warehouse lending facilities. The Real Estate Services segment performs servicing and provides loss mitigation services for securitized long-term mortgage portfolio. The Long-Term Mortgage Portfolio segment is composed of residual interests in securitization trusts. The company was founded by Joseph R. Tomkinson in August 1995 and is headquartered in Newport Beach, CA.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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