AGNC Investment (NASDAQ:AGNCM – Get Free Report) and Dynex Capital (NYSE:DX – Get Free Report) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Valuation and Earnings
This table compares AGNC Investment and Dynex Capital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AGNC Investment||$386.00 million||N/A||N/A||N/A||N/A|
|Dynex Capital||$86.69 million||7.04||$143.16 million||$0.18||59.89|
Dynex Capital has lower revenue, but higher earnings than AGNC Investment.
|Net Margins||Return on Equity||Return on Assets|
AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 7.6%. Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 14.5%. Dynex Capital pays out 866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
46.1% of Dynex Capital shares are held by institutional investors. 2.5% of Dynex Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings for AGNC Investment and Dynex Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dynex Capital has a consensus price target of $14.17, indicating a potential upside of 31.42%. Given Dynex Capital’s higher probable upside, analysts plainly believe Dynex Capital is more favorable than AGNC Investment.
Dynex Capital beats AGNC Investment on 6 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 Dynex Capital
Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.
Receive News & Ratings for AGNC Investment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AGNC Investment and related companies with MarketBeat.com's FREE daily email newsletter.