Reviewing Angel Oak Mortgage REIT (NYSE:AOMR) and CaliberCos (NASDAQ:CWD)

Angel Oak Mortgage REIT (NYSE:AOMR) and CaliberCos (NASDAQ:CWD) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Angel Oak Mortgage REIT and CaliberCos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	2	0	2.40
CaliberCos	0	0	0	0	N/A

Angel Oak Mortgage REIT currently has a consensus target price of $11.50, indicating a potential downside of 2.54%. Given Angel Oak Mortgage REIT’s higher probable upside, equities analysts plainly believe Angel Oak Mortgage REIT is more favorable than CaliberCos.

Profitability

This table compares Angel Oak Mortgage REIT and CaliberCos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	47.28%	-7.29%	-0.77%
CaliberCos	-18.14%	-19.75%	-5.30%

Earnings & Valuation

This table compares Angel Oak Mortgage REIT and CaliberCos’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$69.25 million	4.26	$33.71 million	$1.84	6.41
CaliberCos	$84.37 million	0.15	-$12.70 million	($0.74)	-0.80

Angel Oak Mortgage REIT has higher earnings, but lower revenue than CaliberCos. CaliberCos is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are held by institutional investors. Comparatively, 4.1% of CaliberCos shares are held by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are held by insiders. Comparatively, 42.3% of CaliberCos shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Angel Oak Mortgage REIT has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, CaliberCos has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Summary

Angel Oak Mortgage REIT beats CaliberCos on 11 of the 13 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 incorporated in 2018 and is headquartered in Atlanta, Georgia.

About CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.