Head to Head Analysis: Service Properties Trust (NASDAQ:SVC) and Impac Mortgage (NYSE:IMH)

Service Properties Trust (NASDAQ:SVC) and Impac Mortgage (NYSE:IMH) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Service Properties Trust and Impac Mortgage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Service Properties Trust	-12.87%	-22.67%	-3.37%
Impac Mortgage	N/A	-1,309.14%	-37.12%

Earnings & Valuation

This table compares Service Properties Trust and Impac Mortgage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Service Properties Trust	$1.90 billion	0.26	-$32.78 million	($1.67)	-1.76
Impac Mortgage	$8.60 million	0.18	-$39.43 million	($1.71)	-0.02

Service Properties Trust has higher revenue and earnings than Impac Mortgage. Service Properties Trust is trading at a lower price-to-earnings ratio than Impac Mortgage, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

77.6% of Service Properties Trust shares are owned by institutional investors. Comparatively, 12.5% of Impac Mortgage shares are owned by institutional investors. 1.4% of Service Properties Trust shares are owned by insiders. Comparatively, 2.8% of Impac Mortgage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Service Properties Trust has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, Impac Mortgage has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Service Properties Trust and Impac Mortgage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Properties Trust	0	0	2	0	3.00
Impac Mortgage	0	0	0	0	0.00

Service Properties Trust currently has a consensus price target of $6.00, suggesting a potential upside of 104.08%. Given Service Properties Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Service Properties Trust is more favorable than Impac Mortgage.

Summary

Service Properties Trust beats Impac Mortgage on 11 of the 14 factors compared between the two stocks.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

About Impac Mortgage

Impac Mortgage Holdings, Inc. engages in the provision of mortgage and real estate solutions. It operates through the following segments: Mortgage Lending, Real Estate Services, and Long-Term Mortgage Portfolio. The Mortgage Lending segment offers mortgage lending products through lending channels, retail, wholesale, and correspondent, and retains mortgage servicing rights and warehouse lending facilities. The Real Estate Services segment performs servicing and provides loss mitigation services for securitized long-term mortgage portfolio. The Long-Term Mortgage Portfolio segment is composed of residual interests in securitization trusts. The company was founded by Joseph R. Tomkinson in August 1995 and is headquartered in Newport Beach, CA.