3 Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks for Tuesday, November 18
Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Mortgage Real Estate Investment Trusts (REITs) industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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3 Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Mortgage Real Estate Investment Trusts (REITs) industry for Wednesday, November 19, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Mortgage Real Estate Investment Trusts (REITs) industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Arbor Realty Trust, Inc. | ABR | 2.95 | 10.7 | na | 11.3% | 0.71 | 14.2 | A |
| BrightSpire Capital, Inc. | BRSP | 2.07 | na | 14.9 | 12.4% | 0.72 | na | B |
| NexPoint Real Estate Finance, Inc. | NREF | 1.59 | 4.5 | na | 13.1% | 0.65 | na | A |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Arbor Realty Trust, Inc.’s Value Grade
Value Grade:
| Metric | Score | ABR | Industry Median |
| Price/Sales | 63 | 2.95 | 4.84 |
| Price/Earnings | 21 | 10.7 | 12.4 |
| EV/EBITDA | na | na | 14.9 |
| Shareholder Yield | 4 | 11.3% | 10.8% |
| Price/Book Value | 15 | 0.71 | 0.72 |
| Price/Free Cash Flow | 38 | 14.2 | 13.1 |
Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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 2003 and is headquartered in Uniondale, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Arbor Realty Trust, Inc. has a Value Score of 86, which is considered to be undervalued.
When you look at Arbor Realty Trust, Inc.’s price-to-sales ratio at 2.95 compared to the industry median at 4.84, this company has a lower price relative to revenue compared to its peers. This could make Arbor Realty Trust, Inc.’s stock more attractive for value investors.
Arbor Realty Trust, Inc.’s price-earnings ratio is 10.70 compared to the industry median at 12.40. This means it has a lower share price relative to earnings compared to its peers. This could make Arbor Realty Trust, Inc. more attractive for value investors.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Arbor Realty Trust, Inc.’s shareholder yield is higher than its industry median ratio of 10.80%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Arbor Realty Trust, Inc.’s price-to-book ratio is lower than its industry median ratio of 0.72. This could make Arbor Realty Trust, Inc. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Arbor Realty Trust, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Arbor Realty Trust, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 13.10. This could make Arbor Realty Trust, Inc. less attractive because the higher P/FCF ratio indicates that Arbor Realty Trust, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company’s cash flow to share price value is generally improving or worsening.
BrightSpire Capital, Inc.’s Value Grade
Value Grade:
| Metric | Score | BRSP | Industry Median |
| Price/Sales | 51 | 2.07 | 4.84 |
| Price/Earnings | na | na | 12.4 |
| EV/EBITDA | 60 | 14.9 | 14.9 |
| Shareholder Yield | 3 | 12.4% | 10.8% |
| Price/Book Value | 15 | 0.72 | 0.72 |
| Price/Free Cash Flow | na | na | 13.1 |
BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Norway. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. 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 Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is based in New York, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
BrightSpire Capital, Inc. has a Value Score of 79, which is considered to be undervalued.
BrightSpire Capital, Inc.’s price-to-book ratio is lower than its peers. This could make BrightSpire Capital, Inc. fairly attractive for value investors when compared to the industry median at 0.72.
You can read more about BrightSpire Capital, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
NexPoint Real Estate Finance, Inc.’s Value Grade
Value Grade:
| Metric | Score | NREF | Industry Median |
| Price/Sales | 44 | 1.59 | 4.84 |
| Price/Earnings | 4 | 4.5 | 12.4 |
| EV/EBITDA | na | na | 14.9 |
| Shareholder Yield | 3 | 13.1% | 10.8% |
| Price/Book Value | 12 | 0.65 | 0.72 |
| Price/Free Cash Flow | na | na | 13.1 |
NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, promissory notes, revolving credit facilities, and stock warrants or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
NexPoint Real Estate Finance, Inc. has a Value Score of 98, which is considered to be undervalued.
NexPoint Real Estate Finance, Inc.’s price-earnings ratio is 4.5 compared to the industry median at 12.4. This means that it has a lower price relative to its earnings compared to its peers. This makes NexPoint Real Estate Finance, Inc. more attractive for value investors.
NexPoint Real Estate Finance, Inc.’s price-to-book ratio is lower than its peers. This could make NexPoint Real Estate Finance, Inc. fairly attractive for value investors when compared to the industry median at 0.72.
You can read more about NexPoint Real Estate Finance, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Mortgage Real Estate Investment Trusts (REITs) Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Mortgage Real Estate Investment Trusts (REITs) stocks as well as other industrys.
Choosing Which of the 3 Best Mortgage Real Estate Investment Trusts (REITs) Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Arbor Realty Trust, Inc. stock has a Value Grade of A.
- BrightSpire Capital, Inc. stock has a Value Grade of B.
- NexPoint Real Estate Finance, Inc. stock has a Value Grade of A.
Now that you have a bit more background about each of the 3 undervalued stocks in the Mortgage Real Estate Investment Trusts (REITs) industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Mortgage Real Estate Investment Trusts (REITs) Stocks
Want to learn more about Mortgage Real Estate Investment Trusts (REITs) stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
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