American Tower Corporation (REIT) (NYSE: AMT) and Anworth Mortgage Asset Corporation (NYSE:ANH) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Volatility & Risk

American Tower Corporation (REIT) has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for American Tower Corporation (REIT) and Anworth Mortgage Asset Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Tower Corporation (REIT) 0 0 11 0 3.00
Anworth Mortgage Asset Corporation 0 1 0 0 2.00

American Tower Corporation (REIT) currently has a consensus target price of $146.80, suggesting a potential upside of 8.05%. Anworth Mortgage Asset Corporation has a consensus target price of $6.00, suggesting a potential downside of 0.99%. Given American Tower Corporation (REIT)’s stronger consensus rating and higher possible upside, research analysts clearly believe American Tower Corporation (REIT) is more favorable than Anworth Mortgage Asset Corporation.

Profitability

This table compares American Tower Corporation (REIT) and Anworth Mortgage Asset Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Tower Corporation (REIT) 18.58% 16.70% 3.74%
Anworth Mortgage Asset Corporation 44.13% 8.83% 0.96%

Dividends

American Tower Corporation (REIT) pays an annual dividend of $2.64 per share and has a dividend yield of 1.9%. Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. American Tower Corporation (REIT) pays out 106.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anworth Mortgage Asset Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower Corporation (REIT) has increased its dividend for 2 consecutive years and Anworth Mortgage Asset Corporation has increased its dividend for 5 consecutive years. Anworth Mortgage Asset Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

92.1% of American Tower Corporation (REIT) shares are held by institutional investors. Comparatively, 56.2% of Anworth Mortgage Asset Corporation shares are held by institutional investors. 0.9% of American Tower Corporation (REIT) shares are held by insiders. Comparatively, 1.9% of Anworth Mortgage Asset Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares American Tower Corporation (REIT) and Anworth Mortgage Asset Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Tower Corporation (REIT) $6.33 billion 9.21 $3.74 billion $2.49 54.56
Anworth Mortgage Asset Corporation $83.05 million 7.12 $61.46 million $0.63 9.62

American Tower Corporation (REIT) has higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation is trading at a lower price-to-earnings ratio than American Tower Corporation (REIT), indicating that it is currently the more affordable of the two stocks.

Summary

American Tower Corporation (REIT) beats Anworth Mortgage Asset Corporation on 12 of the 17 factors compared between the two stocks.

American Tower Corporation (REIT) Company Profile

American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.

Anworth Mortgage Asset Corporation Company Profile

Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.

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