Head to Head Analysis: Presidio Property Trust (NASDAQ:SQFT) versus Ready Capital (NYSE:RC)

Presidio Property Trust (NASDAQ:SQFT) and Ready Capital (NYSE:RC) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Insider & Institutional Ownership

38.9% of Presidio Property Trust shares are owned by institutional investors. Comparatively, 55.9% of Ready Capital shares are owned by institutional investors. 18.7% of Presidio Property Trust shares are owned by company insiders. Comparatively, 1.1% of Ready Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Presidio Property Trust has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Ready Capital has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Presidio Property Trust and Ready Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Presidio Property Trust	0	0	0	0	0.00
Ready Capital	1	6	1	0	2.00

Ready Capital has a consensus target price of $9.04, suggesting a potential upside of 25.75%. Given Ready Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Ready Capital is more favorable than Presidio Property Trust.

Dividends

Presidio Property Trust pays an annual dividend of $0.02 per share and has a dividend yield of 3.5%. Ready Capital pays an annual dividend of $1.00 per share and has a dividend yield of 13.9%. Presidio Property Trust pays out -3.9% of its earnings in the form of a dividend. Ready Capital pays out -142.9% 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. Presidio Property Trust has increased its dividend for 1 consecutive years. Ready Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Presidio Property Trust and Ready Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Presidio Property Trust	$17.64 million	0.47	$10.15 million	($0.51)	-1.12
Ready Capital	$945.81 million	1.28	$339.45 million	($0.70)	-10.27

Ready Capital has higher revenue and earnings than Presidio Property Trust. Ready Capital is trading at a lower price-to-earnings ratio than Presidio Property Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Presidio Property Trust and Ready Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Presidio Property Trust	-28.19%	-24.25%	-8.34%
Ready Capital	-11.65%	7.53%	1.49%

Summary

Ready Capital beats Presidio Property Trust on 12 of the 17 factors compared between the two stocks.

About Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.

About Ready Capital

Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments. The LMM Commercial Real Estate segment originates LLM loans across the full life-cycle of an LLM property, including construction, bridge, stabilized, and agency loan origination channels. The Small Business Lending segment acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program; and acquires purchased future receivables. The company has elected to be taxed as a real estate investment trust (REIT) and 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 Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.