RAIT Financial Trust (NYSE: RAS) is one of 85 public companies in the “Commercial REITs” industry, but how does it weigh in compared to its competitors? We will compare RAIT Financial Trust to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Valuation & Earnings
This table compares RAIT Financial Trust and its competitors revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|RAIT Financial Trust||$58.82 million||N/A||-0.43|
|RAIT Financial Trust Competitors||$460.20 million||$291.73 million||31.91|
RAIT Financial Trust’s competitors have higher revenue and earnings than RAIT Financial Trust. RAIT Financial Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
59.9% of RAIT Financial Trust shares are held by institutional investors. Comparatively, 69.1% of shares of all “Commercial REITs” companies are held by institutional investors. 1.3% of RAIT Financial Trust shares are held by company insiders. Comparatively, 8.5% of shares of all “Commercial REITs” companies 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.
RAIT Financial Trust pays an annual dividend of $0.20 per share and has a dividend yield of 30.4%. RAIT Financial Trust pays out -13.0% of its earnings in the form of a dividend. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 204.6% of their earnings in the form of a dividend. RAIT Financial Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares RAIT Financial Trust and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RAIT Financial Trust||-99.46%||0.98%||0.15%|
|RAIT Financial Trust Competitors||45.76%||5.92%||3.27%|
This is a breakdown of recent recommendations and price targets for RAIT Financial Trust and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RAIT Financial Trust||1||2||0||0||1.67|
|RAIT Financial Trust Competitors||747||2725||2246||31||2.27|
RAIT Financial Trust currently has a consensus target price of $1.43, suggesting a potential upside of 116.50%. As a group, “Commercial REITs” companies have a potential upside of 6.67%. Given RAIT Financial Trust’s higher possible upside, research analysts clearly believe RAIT Financial Trust is more favorable than its competitors.
Risk & Volatility
RAIT Financial Trust has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, RAIT Financial Trust’s competitors have a beta of 0.81, meaning that their average share price is 19% less volatile than the S&P 500.
RAIT Financial Trust competitors beat RAIT Financial Trust on 9 of the 13 factors compared.
RAIT Financial Trust Company Profile
RAIT Financial Trust (RAIT) is a real estate investment trust (REIT). The Company focuses on providing commercial real estate (CRE) financing throughout the United States. The core of its business is a full service CRE lending platform focused on first lien loans. It offers customized lending solutions to meet borrower needs and internal credit goals. It offers personalized middle-market financing solutions and a complement of lending products for CRE. The Company may also offer mezzanine loans and preferred equity interests in limited circumstances to support first lien loans. It is engaged in floating rate securitization programs and has access to multiple sources of funding, including senior debt, convertible securities, preferred securities and common securities. The Company also owns and manages a portfolio of CRE properties, and manages real estate assets for third parties. The Company is engaged in lending, owning and managing CRE assets throughout the United States.
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