Anworth Mortgage Asset Corporation (NYSE: ANH) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its rivals? We will compare Anworth Mortgage Asset Corporation to related businesses based on the strength of its valuation, profitability, risk, institutional ownership, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

56.2% of Anworth Mortgage Asset Corporation shares are owned by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are owned by institutional investors. 1.9% of Anworth Mortgage Asset Corporation shares are owned by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Anworth Mortgage Asset Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Anworth Mortgage Asset Corporation $83.05 million N/A 9.60
Anworth Mortgage Asset Corporation Competitors $1.00 billion $531.02 million 29.40

Anworth Mortgage Asset Corporation’s rivals have higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. 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. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. Anworth Mortgage Asset Corporation has increased its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Anworth Mortgage Asset Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anworth Mortgage Asset Corporation 0 1 0 0 2.00
Anworth Mortgage Asset Corporation Competitors 85 328 606 24 2.55

Anworth Mortgage Asset Corporation presently has a consensus target price of $6.00, indicating a potential downside of 0.83%. As a group, “Specialized REITs” companies have a potential upside of 12.96%. Given Anworth Mortgage Asset Corporation’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Anworth Mortgage Asset Corporation has less favorable growth aspects than its rivals.

Profitability

This table compares Anworth Mortgage Asset Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anworth Mortgage Asset Corporation 44.13% 8.83% 0.96%
Anworth Mortgage Asset Corporation Competitors 36.41% 8.84% 3.25%

Volatility & Risk

Anworth Mortgage Asset Corporation has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation’s rivals have a beta of 0.85, meaning that their average share price is 15% less volatile than the S&P 500.

Summary

Anworth Mortgage Asset Corporation rivals beat Anworth Mortgage Asset Corporation on 11 of the 14 factors compared.

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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