Analyzing New World Development (OTCMKTS:NDVLY) and Claros Mortgage Trust (NYSE:CMTG)

New World Development (OTCMKTS:NDVLY) and Claros Mortgage Trust (NYSE:CMTG) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Volatility & Risk

New World Development has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.

Valuation and Earnings

This table compares New World Development and Claros Mortgage Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
New World Development	$4.58 billion	0.12	-$2.19 billion	N/A	N/A
Claros Mortgage Trust	$306.55 million	3.05	$6.03 million	($0.63)	-10.63

Claros Mortgage Trust has lower revenue, but higher earnings than New World Development.

Analyst Ratings

This is a summary of current recommendations for New World Development and Claros Mortgage Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
New World Development	0	0	0	0	0.00
Claros Mortgage Trust	2	4	0	0	1.67

Claros Mortgage Trust has a consensus target price of $7.44, suggesting a potential upside of 11.01%. Given Claros Mortgage Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Claros Mortgage Trust is more favorable than New World Development.

Profitability

This table compares New World Development and Claros Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
New World Development	N/A	N/A	N/A
Claros Mortgage Trust	-32.75%	5.60%	1.60%

Institutional & Insider Ownership

89.5% of Claros Mortgage Trust shares are held by institutional investors. 1.4% of Claros Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

New World Development pays an annual dividend of $0.02 per share and has a dividend yield of 4.5%. Claros Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 6.0%. Claros Mortgage Trust pays out -63.5% of its earnings in the form of a dividend.

Summary

Claros Mortgage Trust beats New World Development on 11 of the 13 factors compared between the two stocks.

About New World Development

New World Development Company Limited, an investment holding company, operates in the property development and investment business in Hong Kong and Mainland China. Its property portfolio includes residential, retail, office, and industrial properties. The company also provides commercial aircraft leasing services; operates expressways; and constructs residential and commercial projects, as well as whole life, term, dread disease, medical, disability, and accident insurance products. In addition, it is involved in the duty-free operation and general trading, civil engineering, loyalty program, modern logistics, land development, marketing, promotion, fashion retailing and trading, and piling and ground investigation businesses; and development and operation of sports park. Further, the company manages Hong Kong convention and exhibition centre; operates toll roads, club houses, golf and tennis academies, and shopping malls; operates department stores; and provides information technology, endoscopic, healthcare, training course, ticketing, financial, project management and consultancy, retail and corporate sales, management, culture and recreation, advertising, building construction, estate agency, wellness and rehabilitation, endoscopic, carpark management, supply chain management, and catering services, as well as property management, business, and investment consultancy services. Additionally, it offers elderly residential places and services; property agency, management, and consultancy services; and undertakes foundation works. The company also invests in, owns, and operates hotel properties in Hong Kong, Mainland China, and the Southeast Asia. New World Development Company Limited was incorporated in 1970 and is headquartered in Central, Hong Kong.

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.