Redwood Trust Inc. (RWT) and UMH Properties Inc. (NYSE:UMH) Contrasting side by side

Redwood Trust Inc. (NYSE:RWT) and UMH Properties Inc. (NYSE:UMH) have been rivals in the REIT – Diversified for quite some time. Below is a review of each business including various aspects such as analyst recommendations, profitability, institutional ownership, risk, dividends, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Redwood Trust Inc. 215.59M 6.99 115.85M 1.30 12.12
UMH Properties Inc. 129.59M 4.06 56.53M -0.68 0.00

Table 1 demonstrates Redwood Trust Inc. and UMH Properties Inc.’s top-line revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 demonstrates the net margins, return on equity and return on assets of Redwood Trust Inc. and UMH Properties Inc.

Net Margins Return on Equity Return on Assets
Redwood Trust Inc. 53.74% 11.3% 1.9%
UMH Properties Inc. -43.62% -14.4% -2.9%

Volatility and Risk

A 0.7 beta indicates that Redwood Trust Inc. is 30.00% less volatile compared to Standard & Poor’s 500. UMH Properties Inc. has a 0.72 beta and it is 28.00% less volatile than Standard & Poor’s 500.

Dividends

Redwood Trust Inc. dividend pay is $1.18 per share with 7.52% dividend yield annually. UMH Properties Inc. has an annual dividend pay of $0.72 per share while its annual dividend yield is 5.32%.

Analyst Ratings

Redwood Trust Inc. and UMH Properties Inc. Ratings and Recommendations are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Redwood Trust Inc. 0 0 2 3.00
UMH Properties Inc. 0 0 3 3.00

Redwood Trust Inc.’s upside potential currently stands at 16.99% and an $18.25 consensus price target. Competitively the consensus price target of UMH Properties Inc. is $18.33, which is potential 35.18% upside. The information presented earlier suggests that UMH Properties Inc. looks more robust than Redwood Trust Inc. as far as analyst view.

Insider & Institutional Ownership

Institutional investors owned 85% of Redwood Trust Inc. shares and 60.3% of UMH Properties Inc. shares. About 0.2% of Redwood Trust Inc.’s share are owned by insiders. Competitively, UMH Properties Inc. has 9% of it’s share owned by insiders.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Redwood Trust Inc. 2.33% -2.11% -5.73% -6.95% 7.71% 4.78%
UMH Properties Inc. -3.96% -4.85% 4.87% -17.03% 12.28% 12.75%

For the past year Redwood Trust Inc. was less bullish than UMH Properties Inc.

Summary

Redwood Trust Inc. beats UMH Properties Inc. on 11 of the 13 factors.

Redwood Trust, Inc., together with its subsidiaries, engages in mortgage banking activities in the United States. The company operates through three segments: Residential Investments, Residential Mortgage Banking, and Commercial. The Residential Investments segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations and issued by third parties and other credit risk-related investments; residential loans held for investment; mortgage servicing rights associated with residential loans; and derivative financial instruments to manage risks associated with residential loans. The Residential Mortgage Banking segment operates a mortgage loan conduit, which acquires residential loans from third-party originators for sale, securitization, or transfer to investment portfolio. This segment also includes derivative financial instruments to manage risks associated with residential loans. The Commercial segment consists of investments in multi-family securities and commercial mortgage-backed securities, as well as one remaining commercial loan investments. It qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, the company intends to distribute at least 90% of its taxable income as dividends to shareholders. Redwood Trust, Inc. was founded in 1994 and is headquartered in Mill Valley, California.

UMH Properties, Inc. (UMH) is a real estate investment trust. The firm engages in the ownership and operation of manufactured home communities. It leases manufactured home spaces to private manufactured home owners, as well as leases homes to residents. The firm invests in the real estate markets of New York, New Jersey, Pennsylvania, Ohio, and Tennessee. In addition, it invests in debt and equity securities of REITs. United Mobile Homes was incorporated in 1968. The company was formerly known as United Mobile Homes, Inc. UMH Properties is based in Freehold, New Jersey.