Reviewing iStar Inc. (STAR)’s and PennyMac Mortgage Investment Trust (NYSE:PMT)’s results

Both iStar Inc. (NYSE:STAR) and PennyMac Mortgage Investment Trust (NYSE:PMT) compete on a level playing field in the REIT – Diversified industry. We will evaluate their performance with regards to dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
iStar Inc. 13 0.00 58.78M -1.72 0.00
PennyMac Mortgage Investment Trust 23 2.30 74.55M 2.32 9.51

Table 1 demonstrates iStar Inc. and PennyMac Mortgage Investment Trust’s gross revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 hightlights the return on assets, return on equity and net margins of the two companies.

Net Margins Return on Equity Return on Assets
iStar Inc. 464,296,998.42% -11.8% -2.2%
PennyMac Mortgage Investment Trust 328,269,484.81% 0% 0%

Risk and Volatility

A 0.7 beta indicates that iStar Inc. is 30.00% less volatile compared to Standard & Poor’s 500. Competitively, PennyMac Mortgage Investment Trust is 40.00% less volatile than Standard & Poor’s 500, because of the 0.6 beta.

Analyst Recommendations

The following table delivered below contains the ratings and recommendations for iStar Inc. and PennyMac Mortgage Investment Trust.

Sell Ratings Hold Ratings Buy Ratings Rating Score
iStar Inc. 0 0 2 3.00
PennyMac Mortgage Investment Trust 0 1 2 2.67

The consensus target price of iStar Inc. is $96, with potential upside of 638.46%. On the other hand, PennyMac Mortgage Investment Trust’s potential upside is 2.46% and its consensus target price is $23.33. Based on the analysts view we can conclude, iStar Inc. is looking more favorable than PennyMac Mortgage Investment Trust.

Institutional and Insider Ownership

The shares of both iStar Inc. and PennyMac Mortgage Investment Trust are owned by institutional investors at 91.2% and 67.6% respectively. Insiders owned 4.5% of iStar Inc. shares. Competitively, insiders own roughly 2.1% of PennyMac Mortgage Investment Trust’s shares.

Performance

Here are 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)
iStar Inc. 3.21% 5.26% 50.34% 36.79% 22.79% 43.95%
PennyMac Mortgage Investment Trust -0.09% 0.96% 4.9% 10.09% 14.62% 18.31%

For the past year iStar Inc. was more bullish than PennyMac Mortgage Investment Trust.

Summary

On 7 of the 12 factors PennyMac Mortgage Investment Trust beats iStar Inc.

iStar Inc. finances, invests in, and develops real estate and real estate related projects in the United States. It operates through four segments: Real Estate Finance, Net Lease, Operating Properties, and Land and Development. The Real Estate Finance segment offers senior and mezzanine real estate loans; preferred equity investments, and senior and subordinated loans to business entities; and whole loans and loan participations. The Net Lease segment owns and leases properties to single creditworthy tenants. As of December 31, 2016, this segment owned 282 facilities comprising 17.2 million square feet in 33 states. The Operating Properties segment operates commercial properties consisting of office, retail, hotel, and other properties; and residential properties, including luxury condominium projects. This segment operated 19 commercial properties comprising 2.9 million square feet in 8 states; and 8 residential projects representing 61 units located within luxury condominium projects in cities situated in the United States. The Land and Development segment owns a portfolio of land entitled for master planned communities (MPC), as well as for waterfront and urban infill land parcels. This segment owned 31 properties, including 10 MPC projects, 15 infill land parcels, and 6 waterfront land parcels. 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 formerly known as iStar Financial Inc. and changed its name to iStar Inc. in August 2015. iStar Inc. was founded in 1993 and is headquartered in New York, New York.

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company operates in two segments, Correspondent Production and Investment Activities. The Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). The Investment Activities segment invests in mortgage-related assets, which include distressed mortgage loans, excess servicing spread, real estate acquired in settlement of loans, real estate held for investment, mortgage servicing rights, small balance commercial real estate mortgage loans, and credit risk transfer agreements. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. 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. PennyMac Mortgage Investment Trust was founded in 2009 and is based in Westlake Village, California.

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