Ellington Financial Inc. (EFC) vs Ladder Capital Corp (LADR)

Ellington Financial Inc. and Ladder Capital Corp are both Reit Mortgage companies. Ellington Financial Inc. is the larger, with a market value of $1.6B against $1.2B — 1.4× the size. Ellington Financial Inc. trades at the lower P/E: 7.5× against 21.6×. Ellington Financial Inc. grew revenue faster over the last twelve months: 31.0% against −11.0%. Ladder Capital Corp has the higher net margin (54.6% vs 33.3%) and the lower return on invested capital (0.56% vs 2.52%). Both pay a dividend; Ellington Financial Inc. yields more (15.0% vs 8.62%). Across the 22 metrics below, Ellington Financial Inc. leads on 14 and Ladder Capital Corp on 8.

Valuation

Metric EFC LADR Reit Mortgage median
P/E 7.54 21.62 7.80
P/S 2.66 11.83 1.90
P/B 0.87 0.79 0.61
Price to free cash flow n/m 12.02 5.90
EV/EBITDA 24.24 49.67 28.40
EV/Sales 32.17 53.10 16.02
Earnings yield 13.27% 4.63% 7.68%
Free cash flow yield (35.20%) 8.32% 11.60%

Profitability

Metric EFC LADR Reit Mortgage median
Gross margin 95.29% 100.00% 100.00%
Operating margin 132.74% 49.94% 35.40%
Net margin 33.26% 54.61% 11.85%
Free cash flow margin (93.67%) 99.69% 26.68%
Return on equity 12.37% 3.57% 4.81%
Return on assets 1.02% 1.04% 0.62%
Return on invested capital 2.52% 0.56% 1.22%

Growth

Metric EFC LADR Reit Mortgage median
Revenue growth (TTM) 30.99% (10.95%) 4.70%
EPS growth (last fiscal year) (12.50%) (40.70%) —
Revenue growth, 5-year CAGR 23.30% 49.36% 14.60%
Net income growth, 5-year CAGR 47.10% 0.00% 0.00%

Health

Metric EFC LADR Reit Mortgage median
Debt to equity 9.37 2.81 3.30
Current ratio 52.06 44.15 1.00
Net debt to EBITDA 25.85 36.15 18.31

Dividend

Metric EFC LADR Reit Mortgage median
Dividend yield 15.01% 8.62% 13.05%
Payout ratio — 0.83 1.24

Size

Metric EFC LADR Reit Mortgage median
Market cap 1.61b 1.15b 517.48m

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