American Capital Mortgage Investment Corp. (NASDAQ: MTGE) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it contrast to its competitors? We will compare American Capital Mortgage Investment Corp. to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

73.9% of American Capital Mortgage Investment Corp. shares are held by institutional investors. Comparatively, 58.1% of shares of all “Mortgage REITs” companies are held by institutional investors. 1.1% of American Capital Mortgage Investment Corp. shares are held by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares American Capital Mortgage Investment Corp. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Capital Mortgage Investment Corp. 104.38% 10.40% 1.77%
American Capital Mortgage Investment Corp. Competitors 49.20% 10.70% 2.78%

Dividends

American Capital Mortgage Investment Corp. pays an annual dividend of $1.80 per share and has a dividend yield of 9.4%. American Capital Mortgage Investment Corp. pays out 81.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.1% and pay out 80.6% of their earnings in the form of a dividend. American Capital Mortgage Investment Corp. lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares American Capital Mortgage Investment Corp. and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Capital Mortgage Investment Corp. $158.84 million N/A 8.63
American Capital Mortgage Investment Corp. Competitors $320.94 million $123.24 million 1.64

American Capital Mortgage Investment Corp.’s competitors have higher revenue and earnings than American Capital Mortgage Investment Corp.. American Capital Mortgage Investment Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

American Capital Mortgage Investment Corp. has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, American Capital Mortgage Investment Corp.’s competitors have a beta of 0.72, indicating that their average stock price is 28% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for American Capital Mortgage Investment Corp. and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital Mortgage Investment Corp. 0 1 3 0 2.75
American Capital Mortgage Investment Corp. Competitors 198 1029 911 41 2.36

American Capital Mortgage Investment Corp. currently has a consensus target price of $20.00, suggesting a potential upside of 4.44%. As a group, “Mortgage REITs” companies have a potential upside of 3.32%. Given American Capital Mortgage Investment Corp.’s stronger consensus rating and higher probable upside, analysts clearly believe American Capital Mortgage Investment Corp. is more favorable than its competitors.

Summary

American Capital Mortgage Investment Corp. competitors beat American Capital Mortgage Investment Corp. on 8 of the 14 factors compared.

American Capital Mortgage Investment Corp. Company Profile

MTGE Investment Corp., formerly American Capital Mortgage Investment Corp., is a real estate investment trust. The Company invests in, finances and manages a leveraged portfolio of real estate-related investments, which include agency residential mortgage-backed securities (RMBS), non-agency securities, other mortgage-related investments and other real estate investments. Agency RMBS includes residential mortgage pass-through certificates and collateralized mortgage obligations (CMOs) structured from residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a government-sponsored enterprise (GSE), or by a United States Government agency, such as Government National Mortgage Association (Ginnie Mae). Non-agency securities include securities backed by residential mortgages that are not guaranteed by a GSE or the United States Government agency, and credit risk transfer securities (CRT). The Company’s manager is MTGE Management, LLC.

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