BrightSpire Capital, Inc. (BRSP) vs MFA Financial, Inc. (MFA)

BrightSpire Capital, Inc. and MFA Financial, Inc. are both Reit Mortgage companies. MFA Financial, Inc. is the larger, with a market value of $677.3M against $479.5M — 1.4× the size. BrightSpire Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; MFA Financial, Inc. trades at 6.5×. MFA Financial, Inc. grew revenue faster over the last twelve months: 4.90% against 4.70%. MFA Financial, Inc. has the higher net margin (13.8% vs −13.1%) and the higher return on invested capital (2.88% vs −0.73%). Both pay a dividend; MFA Financial, Inc. yields more (21.9% vs 17.3%). Across the 21 metrics below, MFA Financial, Inc. leads on 15 and BrightSpire Capital, Inc. on 6.

Valuation

Metric BRSP MFA Reit Mortgage median
P/E n/m 6.46 7.10
P/S 2.29 0.89 1.77
P/B 0.55 0.38 0.55
Price to free cash flow 2.67 1.90 5.36
EV/EBITDA 196.00 19.61 28.29
EV/Sales 12.88 15.72 15.90
Earnings yield (6.23%) 15.48% 8.10%
Free cash flow yield 37.47% 52.56% 13.00%

Profitability

Metric BRSP MFA Reit Mortgage median
Gross margin 61.90% 100.00% 100.00%
Operating margin (17.17%) 79.06% 35.40%
Net margin (13.14%) 13.82% 11.85%
Free cash flow margin 85.71% 46.95% 26.68%
Return on equity (2.92%) 5.88% 4.81%
Return on assets (0.75%) 0.83% 0.62%
Return on invested capital (0.73%) 2.88% 1.22%

Growth

Metric BRSP MFA Reit Mortgage median
Revenue growth (TTM) 4.70% 4.90% 4.70%
EPS growth (last fiscal year) 75.24% 58.54% 45.25%
Revenue growth, 5-year CAGR (6.15%) 11.47% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BRSP MFA Reit Mortgage median
Debt to equity 2.75 6.56 3.30
Current ratio 0.83 0.00 1.00
Net debt to EBITDA (182.35) 17.85 18.31

Dividend

Metric BRSP MFA Reit Mortgage median
Dividend yield 17.34% 21.85% 17.34%
Payout ratio — 1.44 1.28

Size

Metric BRSP MFA Reit Mortgage median
Market cap 479.53m 677.29m 479.53m

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