AGNC Investment (NASDAQ:AGNCM) and Ellington Residential Mortgage REIT (NYSE:EARN) Financial Analysis

AGNC Investment (NASDAQ:AGNCMGet Free Report) and Ellington Residential Mortgage REIT (NYSE:EARNGet Free Report) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Insider and Institutional Ownership

18.4% of Ellington Residential Mortgage REIT shares are held by institutional investors. 2.5% of Ellington Residential Mortgage REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AGNC Investment and Ellington Residential Mortgage REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AGNC Investment N/A N/A N/A
Ellington Residential Mortgage REIT N/A 10.28% 1.08%

Analyst Ratings

This is a summary of current ratings and target prices for AGNC Investment and Ellington Residential Mortgage REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGNC Investment 0 0 0 0 N/A
Ellington Residential Mortgage REIT 0 1 0 0 2.00

Ellington Residential Mortgage REIT has a consensus price target of $7.50, indicating a potential upside of 22.95%. Given Ellington Residential Mortgage REIT’s higher probable upside, analysts plainly believe Ellington Residential Mortgage REIT is more favorable than AGNC Investment.

Dividends

AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 7.3%. Ellington Residential Mortgage REIT pays an annual dividend of $0.96 per share and has a dividend yield of 15.7%. Ellington Residential Mortgage REIT pays out 246.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares AGNC Investment and Ellington Residential Mortgage REIT’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AGNC Investment $386.00 million N/A N/A N/A N/A
Ellington Residential Mortgage REIT $20.19 million 4.79 -$30.20 million $0.39 15.64

AGNC Investment has higher revenue and earnings than Ellington Residential Mortgage REIT.

Summary

Ellington Residential Mortgage REIT beats AGNC Investment on 6 of the 8 factors compared between the two stocks.

About AGNC Investment

(Get Free Report)

AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and 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 American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.

About Ellington Residential Mortgage REIT

(Get Free Report)

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. Ellington Residential Mortgage REIT was incorporated in 2012 and is based in Old Greenwich, Connecticut.

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