Analyzing Rithm Capital (NYSE:RITM) and Plymouth Industrial REIT (NYSE:PLYM)

Plymouth Industrial REIT (NYSE:PLYM) and Rithm Capital (NYSE:RITM) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Plymouth Industrial REIT and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plymouth Industrial REIT	0.46%	0.19%	0.07%
Rithm Capital	14.99%	17.54%	2.50%

Dividends

Plymouth Industrial REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.3%. Plymouth Industrial REIT pays out 4,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Capital pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rithm Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Plymouth Industrial REIT and Rithm Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plymouth Industrial REIT	1	4	4	0	2.33
Rithm Capital	0	1	8	0	2.89

Plymouth Industrial REIT currently has a consensus target price of $25.22, indicating a potential upside of 35.46%. Rithm Capital has a consensus target price of $12.78, indicating a potential upside of 18.48%. Given Plymouth Industrial REIT’s higher probable upside, equities research analysts clearly believe Plymouth Industrial REIT is more favorable than Rithm Capital.

Earnings and Valuation

This table compares Plymouth Industrial REIT and Rithm Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plymouth Industrial REIT	$201.57 million	4.19	$13.66 million	$0.02	931.00
Rithm Capital	$3.80 billion	1.48	$622.26 million	$0.99	10.89

Rithm Capital has higher revenue and earnings than Plymouth Industrial REIT. Rithm Capital is trading at a lower price-to-earnings ratio than Plymouth Industrial REIT, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.7% of Plymouth Industrial REIT shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 1.4% of Plymouth Industrial REIT shares are owned by insiders. Comparatively, 0.4% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Plymouth Industrial REIT has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Summary

Rithm Capital beats Plymouth Industrial REIT on 11 of the 16 factors compared between the two stocks.

About Plymouth Industrial REIT

Plymouth Industrial REIT, Inc. (NYSE: PLYM) is a full service, vertically integrated real estate investment company focused on the acquisition, ownership and management of single and multi-tenant industrial properties. Our mission is to provide tenants with cost effective space that is functional, flexible and safe.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.