Dynex Capital (NYSE: DX) is one of 35 publicly-traded companies in the “Mortgage REITs” industry, but how does it weigh in compared to its rivals? We will compare Dynex Capital to similar companies based on the strength of its profitability, earnings, valuation, dividends, institutional ownership, risk and analyst recommendations.

Valuation & Earnings

This table compares Dynex Capital and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Dynex Capital $91.90 million $43.09 million 4.83
Dynex Capital Competitors $383.25 million $201.70 million 0.59

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Dynex Capital and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynex Capital 0 2 1 0 2.33
Dynex Capital Competitors 117 846 842 33 2.43

Dynex Capital currently has a consensus target price of $7.38, indicating a potential upside of 6.12%. As a group, “Mortgage REITs” companies have a potential upside of 7.86%. Given Dynex Capital’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Dynex Capital has less favorable growth aspects than its rivals.

Volatility & Risk

Dynex Capital has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Dynex Capital’s rivals have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Dividends

Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 10.4%. Dynex Capital pays out 50.0% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.3% and pay out 78.3% of their earnings in the form of a dividend. Dynex Capital is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Dynex Capital and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynex Capital 86.86% 11.23% 1.26%
Dynex Capital Competitors 48.84% 9.92% 2.56%

Institutional and Insider Ownership

44.9% of Dynex Capital shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Mortgage REITs” companies are owned by institutional investors. 7.1% of Dynex Capital shares are owned by insiders. Comparatively, 3.1% of shares of all “Mortgage REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Dynex Capital rivals beat Dynex Capital on 8 of the 15 factors compared.

About Dynex Capital

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage securities on a leveraged basis. The Company’s objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. It invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consists of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac.

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