Peakstone Realty Trust (NYSE:PKST – Get Free Report) and Lument Finance Trust (NYSE:LFT – 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 profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Insider & Institutional Ownership
39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 19.5% of Lument Finance Trust shares are owned by institutional investors. 0.5% of Peakstone Realty Trust shares are owned by insiders. Comparatively, 2.7% of Lument Finance Trust shares are owned by 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.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Peakstone Realty Trust and Lument Finance Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peakstone Realty Trust | 0 | 1 | 1 | 0 | 2.50 |
| Lument Finance Trust | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.9%. Lument Finance Trust pays an annual dividend of $0.32 per share and has a dividend yield of 12.3%. Peakstone Realty Trust pays out -76.3% of its earnings in the form of a dividend. Lument Finance Trust pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares Peakstone Realty Trust and Lument Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peakstone Realty Trust | -18.26% | -3.61% | -1.59% |
| Lument Finance Trust | 18.19% | 14.41% | 1.98% |
Risk & Volatility
Peakstone Realty Trust has a beta of 2.59, suggesting that its stock price is 159% more volatile than the S&P 500. Comparatively, Lument Finance Trust has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Valuation and Earnings
This table compares Peakstone Realty Trust and Lument Finance Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peakstone Realty Trust | $233.20 million | 1.78 | -$550.58 million | ($1.18) | -9.68 |
| Lument Finance Trust | $109.19 million | 1.25 | $19.72 million | $0.36 | 7.24 |
Lument Finance Trust has lower revenue, but higher earnings than Peakstone Realty Trust. Peakstone Realty Trust is trading at a lower price-to-earnings ratio than Lument Finance Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Lument Finance Trust beats Peakstone Realty Trust on 8 of the 14 factors compared between the two stocks.
About Peakstone Realty Trust
Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.
About Lument Finance Trust
Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.
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