Dynex Capital (DX) Competitors

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

Which has stronger earnings & valuation, DX or ARR?

Dynex Capital has higher revenue and 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
Dynex Capital	$108.02M	12.62	$113.90M	$0.77	16.52
ARMOUR Residential REIT	$4.08M	334.78	-$14.39M	-$0.35	-47.71

Is DX or ARR a better dividend stock?

Dynex Capital pays an annual dividend of $2.04 per share and has a dividend yield of 16.0%. ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 17.2%. 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. ARMOUR Residential REIT pays out -822.9% of its earnings in the form of a dividend. Dynex Capital has raised its dividend for 5 consecutive years. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media prefer DX or ARR?

In the previous week, ARMOUR Residential REIT had 1 more articles in the media than Dynex Capital. MarketBeat recorded 6 mentions for ARMOUR Residential REIT and 5 mentions for Dynex Capital. ARMOUR Residential REIT's average media sentiment score of 0.37 beat Dynex Capital's score of 0.04 indicating that ARMOUR Residential REIT is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
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
ARMOUR Residential REIT	2 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do institutionals and insiders hold more shares of DX or ARR?

38.3% of Dynex Capital shares are held by institutional investors. Comparatively, 54.2% of ARMOUR Residential REIT shares are held by institutional investors. 1.0% of Dynex Capital shares are held by insiders. Comparatively, 0.4% of ARMOUR Residential REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Do analysts rate DX or ARR?

Dynex Capital presently has a consensus target price of $12.50, indicating a potential downside of 1.73%. ARMOUR Residential REIT has a consensus target price of $21.00, indicating a potential upside of 25.75%. Given ARMOUR Residential REIT's higher possible upside, analysts plainly believe ARMOUR Residential REIT is more favorable than Dynex Capital.

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

Which has more volatility and risk, DX or ARR?

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

Is DX or ARR 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
Dynex Capital	20.61%	1.59%	0.22%
ARMOUR Residential REIT	-0.27%	16.42%	1.73%

Summary

ARMOUR Residential REIT beats Dynex Capital on 10 of the 19 factors compared between the two stocks.