Dynex Capital (DX) Competitors

ARMOUR Residential REIT (NYSE:ARR) and Dynex Capital (NYSE:DX) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, media sentiment, earnings, analyst recommendations, profitability and risk.

Which has higher earnings & valuation, ARR or DX?

Dynex Capital has lower revenue, but higher earnings than ARMOUR Residential REIT. ARMOUR Residential REIT is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARMOUR Residential REIT	$550.95M	2.47	-$14.39M	-$0.35	-47.60
Dynex Capital	$319.53M	4.27	$113.90M	$0.77	16.55

Is ARR or DX a better dividend stock?

ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 17.3%. Dynex Capital pays an annual dividend of $2.04 per share and has a dividend yield of 16.0%. ARMOUR Residential REIT pays out -822.9% of its earnings in the form of a dividend. Dynex Capital pays out 264.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital has increased its dividend for 5 consecutive years. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals & insiders believe in ARR or DX?

54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 0.2% of ARMOUR Residential REIT shares are owned by insiders. Comparatively, 1.0% of Dynex Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Is ARR or DX more profitable?

Dynex Capital has a net margin of 20.61% compared to ARMOUR Residential REIT's net margin of -0.27%. ARMOUR Residential REIT's return on equity of 16.42% beat Dynex Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
ARMOUR Residential REIT	-0.27%	16.42%	1.73%
Dynex Capital	20.61%	1.59%	0.22%

Does the media favor ARR or DX?

In the previous week, ARMOUR Residential REIT and ARMOUR Residential REIT both had 5 articles in the media. ARMOUR Residential REIT's average media sentiment score of 0.67 beat Dynex Capital's score of 0.04 indicating that ARMOUR Residential REIT is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
ARMOUR Residential REIT	2 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Dynex Capital	1 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral

Do analysts prefer ARR or DX?

ARMOUR Residential REIT presently has a consensus target price of $21.00, suggesting a potential upside of 26.05%. Dynex Capital has a consensus target price of $12.50, suggesting a potential downside of 1.88%. Given ARMOUR Residential REIT's higher possible upside, equities research analysts plainly believe ARMOUR Residential REIT is more favorable than Dynex Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARMOUR Residential REIT	0 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.20
Dynex Capital	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more volatility & risk, ARR or DX?

ARMOUR Residential REIT has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Summary

ARMOUR Residential REIT and Dynex Capital tied by winning 9 of the 18 factors compared between the two stocks.