Comparing CTO Realty Growth (NYSE:CTO) and Rithm Capital (NYSE:RITM)

Rithm Capital (NYSE:RITM) and CTO Realty Growth (NYSE:CTO) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Profitability

This table compares Rithm Capital and CTO Realty Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	19.77%	19.33%	3.15%
CTO Realty Growth	15.43%	3.70%	1.67%

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.0%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 8.8%. Rithm Capital pays out 66.7% of its earnings in the form of a dividend. CTO Realty Growth pays out 276.4% 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.

Insider & Institutional Ownership

44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are held by institutional investors. 0.4% of Rithm Capital shares are held by insiders. Comparatively, 5.0% of CTO Realty Growth shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Rithm Capital has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Rithm Capital and CTO Realty Growth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	9	0	2.90
CTO Realty Growth	0	0	4	0	3.00

Rithm Capital currently has a consensus price target of $12.32, indicating a potential upside of 10.68%. CTO Realty Growth has a consensus price target of $19.33, indicating a potential upside of 11.53%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, analysts plainly believe CTO Realty Growth is more favorable than Rithm Capital.

Valuation and Earnings

This table compares Rithm Capital and CTO Realty Growth’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$3.80 billion	1.42	$622.26 million	$1.50	7.42
CTO Realty Growth	$109.12 million	3.65	$5.53 million	$0.55	31.52

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

Summary

Rithm Capital beats CTO Realty Growth on 10 of the 16 factors compared between the two stocks.

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.

About CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.