Head-To-Head Survey: Angel Oak Mortgage REIT (NYSE:AOMR) and LuxUrban Hotels (NASDAQ:LUXH)

Angel Oak Mortgage REIT (NYSE:AOMR) and LuxUrban Hotels (NASDAQ:LUXH) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are held by institutional investors. Comparatively, 28.5% of LuxUrban Hotels shares are held by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are held by insiders. Comparatively, 7.0% of LuxUrban Hotels shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Angel Oak Mortgage REIT and LuxUrban Hotels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	2	0	2.40
LuxUrban Hotels	0	2	1	0	2.33

Angel Oak Mortgage REIT currently has a consensus target price of $12.00, suggesting a potential upside of 22.32%. LuxUrban Hotels has a consensus target price of $280.00, suggesting a potential upside of 23,233.33%. Given LuxUrban Hotels’ higher probable upside, analysts plainly believe LuxUrban Hotels is more favorable than Angel Oak Mortgage REIT.

Risk & Volatility

Angel Oak Mortgage REIT has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, LuxUrban Hotels has a beta of -1.16, indicating that its stock price is 216% less volatile than the S&P 500.

Profitability

This table compares Angel Oak Mortgage REIT and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	70.22%	-4.51%	-0.52%
LuxUrban Hotels	-145.57%	N/A	-29.89%

Earnings and Valuation

This table compares Angel Oak Mortgage REIT and LuxUrban Hotels”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$95.95 million	2.40	$33.71 million	$2.94	3.34
LuxUrban Hotels	$72.79 million	0.04	-$78.52 million	($148.49)	-0.01

Angel Oak Mortgage REIT has higher revenue and earnings than LuxUrban Hotels. LuxUrban Hotels is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Angel Oak Mortgage REIT beats LuxUrban Hotels on 11 of the 14 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 incorporated in 2018 and is headquartered in Atlanta, Georgia.

About LuxUrban Hotels

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. The company was incorporated in 2017 and is headquartered in Miami, Florida.