MFA vs. PMT, TWO, ARR, RWT, RC, ARI, DX, NYMT, IVR, and ACRE
Should you be buying MFA Financial stock or one of its competitors? The main competitors of MFA Financial include PennyMac Mortgage Investment Trust (PMT), Two Harbors Investment (TWO), ARMOUR Residential REIT (ARR), Redwood Trust (RWT), Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Dynex Capital (DX), New York Mortgage Trust (NYMT), Invesco Mortgage Capital (IVR), and Ares Commercial Real Estate (ACRE). These companies are all part of the "mortgage reits" industry.
PennyMac Mortgage Investment Trust (NYSE:PMT) and MFA Financial (NYSE:MFA) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, media sentiment, risk, profitability, analyst recommendations, valuation, earnings, dividends and community ranking.
67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 65.3% of MFA Financial shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by insiders. Comparatively, 0.7% of MFA Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
PennyMac Mortgage Investment Trust presently has a consensus price target of $14.58, suggesting a potential downside of 0.66%. MFA Financial has a consensus price target of $12.00, suggesting a potential upside of 5.31%. Given PennyMac Mortgage Investment Trust's stronger consensus rating and higher probable upside, analysts clearly believe MFA Financial is more favorable than PennyMac Mortgage Investment Trust.
PennyMac Mortgage Investment Trust has higher earnings, but lower revenue than MFA Financial. PennyMac Mortgage Investment Trust is trading at a lower price-to-earnings ratio than MFA Financial, indicating that it is currently the more affordable of the two stocks.
PennyMac Mortgage Investment Trust has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, MFA Financial has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.
PennyMac Mortgage Investment Trust received 52 more outperform votes than MFA Financial when rated by MarketBeat users. Likewise, 63.40% of users gave PennyMac Mortgage Investment Trust an outperform vote while only 57.91% of users gave MFA Financial an outperform vote.
PennyMac Mortgage Investment Trust has a net margin of 46.54% compared to PennyMac Mortgage Investment Trust's net margin of 13.24%. MFA Financial's return on equity of 14.15% beat PennyMac Mortgage Investment Trust's return on equity.
PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 10.9%. MFA Financial pays an annual dividend of $1.40 per share and has a dividend yield of 12.3%. PennyMac Mortgage Investment Trust pays out 99.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MFA Financial pays out 350.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
In the previous week, PennyMac Mortgage Investment Trust and PennyMac Mortgage Investment Trust both had 2 articles in the media. MFA Financial's average media sentiment score of 1.56 beat PennyMac Mortgage Investment Trust's score of 0.68 indicating that PennyMac Mortgage Investment Trust is being referred to more favorably in the media.
Summary
PennyMac Mortgage Investment Trust beats MFA Financial on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MFA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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