Critical Analysis: Granite Point Mortgage Trust (NYSE:GPMT) & Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY)

Cyrela Brazil Realty S.A. Empreendimentos e Participações (OTCMKTS:CYRBY) and Granite Point Mortgage Trust (NYSE:GPMT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Granite Point Mortgage Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyrela Brazil Realty S.A. Empreendimentos e Participações	$1.25 billion	N/A	$188.70 million	$0.62	6.10
Granite Point Mortgage Trust	$263.73 million	0.59	-$63.20 million	($3.65)	-0.84

Cyrela Brazil Realty S.A. Empreendimentos e Participações has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than Cyrela Brazil Realty S.A. Empreendimentos e Participações, indicating that it is currently the more affordable of the two stocks.

Dividends

Cyrela Brazil Realty S.A. Empreendimentos e Participações pays an annual dividend of $0.15 per share and has a dividend yield of 4.0%. Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 6.5%. Cyrela Brazil Realty S.A. Empreendimentos e Participações pays out 24.2% of its earnings in the form of a dividend. Granite Point Mortgage Trust pays out -5.5% 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. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Cyrela Brazil Realty S.A. Empreendimentos e Participações has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Granite Point Mortgage Trust has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.

Insider and Institutional Ownership

51.6% of Granite Point Mortgage Trust shares are held by institutional investors. 2.3% of Granite Point Mortgage 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.

Profitability

This table compares Cyrela Brazil Realty S.A. Empreendimentos e Participações and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyrela Brazil Realty S.A. Empreendimentos e Participações	17.34%	14.08%	6.72%
Granite Point Mortgage Trust	-74.38%	2.45%	0.70%

Analyst Ratings

This is a breakdown of recent recommendations for Cyrela Brazil Realty S.A. Empreendimentos e Participações and Granite Point Mortgage Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cyrela Brazil Realty S.A. Empreendimentos e Participações	0	0	0	0	0.00
Granite Point Mortgage Trust	1	1	2	0	2.25

Granite Point Mortgage Trust has a consensus target price of $5.08, indicating a potential upside of 65.04%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than Cyrela Brazil Realty S.A. Empreendimentos e Participações.

Summary

Granite Point Mortgage Trust beats Cyrela Brazil Realty S.A. Empreendimentos e Participações on 8 of the 15 factors compared between the two stocks.

About Cyrela Brazil Realty S.A. Empreendimentos e Participações

Cyrela Brazil Realty S.A. Empreendimentos e Participações develops and constructs residential properties in Brazil. It also provides real estate services, such as construction management and technical consultancy services. The company was founded in 1962 and is headquartered in São Paulo, Brazil.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally 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 founded in 2015 and is headquartered in New York, New York.