AGNC Investment (NASDAQ:AGNCO) and New York Mortgage Trust (NASDAQ:NYMT) Financial Contrast

AGNC Investment (NASDAQ:AGNCO) and New York Mortgage Trust (NASDAQ:NYMT) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

AGNC Investment pays an annual dividend of $1.63 per share and has a dividend yield of 7.2%. New York Mortgage Trust pays an annual dividend of $1.20 per share and has a dividend yield of 15.0%. New York Mortgage Trust pays out -64.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for AGNC Investment and New York Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	N/A
New York Mortgage Trust	0	3	1	0	2.25

New York Mortgage Trust has a consensus target price of $12.80, indicating a potential upside of 60.40%. Given New York Mortgage Trust’s higher probable upside, analysts plainly believe New York Mortgage Trust is more favorable than AGNC Investment.

Earnings & Valuation

This table compares AGNC Investment and New York Mortgage Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$108.00 million	N/A	N/A	N/A	N/A
New York Mortgage Trust	$258.39 million	2.80	-$298.61 million	($1.86)	-4.29

AGNC Investment has higher earnings, but lower revenue than New York Mortgage Trust.

Institutional and Insider Ownership

53.0% of New York Mortgage Trust shares are held by institutional investors. 1.2% of New York Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AGNC Investment and New York Mortgage Trust’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
New York Mortgage Trust	-52.78%	1.46%	0.27%

Summary

New York Mortgage Trust beats AGNC Investment on 9 of the 10 factors compared between the two stocks.

About AGNC Investment

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 New York Mortgage Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, including business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); single-family rental properties; and other mortgage, residential housing, and credit-related assets. The company qualifies as a real estate investment trust for federal income tax purposes. It generally 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 incorporated in 2003 and is headquartered in New York, New York.