By analyzing existing basic indicators between Arbor Realty and Apollo, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Apollo with a short position in Arbor Realty. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arbor Realty has an asset utilization ratio of 17.24 percent. This connotes that the company is making $0.17 for each dollar of assets. An increasing asset utilization means that Arbor Realty Trust is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Arbor or Ready is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Arbor Realty dividends
A dividend is the distribution of a portion of Arbor Realty earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Arbor Realty dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Arbor one year expected dividend income is about USD1.09 per share.
Investing in dividend-paying stocks, such as Arbor Realty Trust is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Arbor Realty must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Arbor Realty. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Arbor Realty's Liquidity
Arbor Realty
financial leverage refers to using borrowed capital as a funding source to finance Arbor Realty Trust ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arbor Realty financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Arbor Realty's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Arbor Realty's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Arbor Realty's total debt and its cash.
Correlation Between Arbor and Ready Capital Corp
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Arbor Realty together with similar or unrelated positions with a negative correlation. For example, you can also add Ready Capital to your portfolio. If Ready Capital is not perfectly correlated to Arbor Realty it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Arbor Realty, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Arbor Realty and Ready Capital in your portfolio? Please note if you are using this as a pair-trade strategy between Arbor Realty and Ready Capital, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between ABR and RC for more information.
Breaking down Arbor Realty Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Arbor Realty revenue. Based on the latest financial disclosure, Arbor Realty Trust reported 315.1
M of revenue. This is 79.22% lower than that of the Real Estate sector and significantly higher than that of the
REIT—Mortgage industry. The revenue for all United States stocks is 96.66% higher than that of Arbor Realty. As for Apollo Commercial we see revenue of 72.84
M, which is much higher than that of the REIT—Mortgage
| Arbor | 315.1 Million |
| Sector | 0.0 |
| Apollo | 72.84 Million |
Over 3 percent spike for Arbor Realty. What does it mean for retail investors?
The skewness is down to 0.3 as of today. Arbor Realty Trust shows above-average downside volatility for the selected time horizon. We advise investors to inspect Arbor Realty Trust further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Arbor Realty future alpha.
Our Final Take On Arbor Realty
While some firms within the reit—mortgage industry are still a little expensive, even after the recent corrections, Arbor Realty may offer a potential longer-term growth to retail investors. To conclude, as of the 31st of July 2020, our ongoing 30 days 'Buy-vs-Sell' recommendation on the enterprise is
Strong Hold. We believe Arbor Realty is
fairly valued with
below average odds of distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Arbor Realty Trust. Please refer to our
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