AG Mortgage Investment Trust (NYSE:MITT) and Annaly Capital Management (NYSE:NLY) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Earnings and Valuation
This table compares AG Mortgage Investment Trust and Annaly Capital Management's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| AG Mortgage Investment Trust | $171.66 million | 1.10 | $92.92 million | N/A | N/A |
| Annaly Capital Management | $3.79 billion | 3.37 | $-2,162,860,000.00 | $1.00 | 9.13 |
AG Mortgage Investment Trust has higher earnings, but lower revenue than Annaly Capital Management.
Analyst Recommendations
This is a breakdown of current ratings and target prices for AG Mortgage Investment Trust and Annaly Capital Management, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| AG Mortgage Investment Trust | 2 | 1 | 0 | 0 | 1.33 |
| Annaly Capital Management | 0 | 1 | 6 | 0 | 2.86 |
AG Mortgage Investment Trust presently has a consensus target price of $2.75, suggesting a potential downside of 32.10%. Annaly Capital Management has a consensus target price of $8.6786, suggesting a potential downside of 4.94%. Given Annaly Capital Management's stronger consensus rating and higher probable upside, analysts plainly believe Annaly Capital Management is more favorable than AG Mortgage Investment Trust.
Profitability
This table compares AG Mortgage Investment Trust and Annaly Capital Management's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| AG Mortgage Investment Trust | -381.52% | -86.32% | -9.62% |
| Annaly Capital Management | -20.12% | 13.27% | 1.57% |
Dividends
AG Mortgage Investment Trust pays an annual dividend of $0.24 per share and has a dividend yield of 5.9%. Annaly Capital Management pays an annual dividend of $0.88 per share and has a dividend yield of 9.6%. Annaly Capital Management pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has raised its dividend for 1 consecutive years and Annaly Capital Management has raised its dividend for 1 consecutive years.
Risk and Volatility
AG Mortgage Investment Trust has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Annaly Capital Management has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
31.3% of AG Mortgage Investment Trust shares are held by institutional investors. Comparatively, 44.6% of Annaly Capital Management shares are held by institutional investors. 2.0% of AG Mortgage Investment Trust shares are held by company insiders. Comparatively, 0.4% of Annaly Capital Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Annaly Capital Management beats AG Mortgage Investment Trust on 10 of the 15 factors compared between the two stocks.
