AGNC Investment (NASDAQ:AGNCM) & Dynex Capital (NYSE:DX) Head-To-Head Comparison

AGNC Investment (NASDAQ:AGNCM) and Dynex Capital (NYSE:DX) 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.

Profitability

This table compares AGNC Investment and Dynex Capital’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
Dynex Capital	7.70%	-4.20%	-0.66%

Dividends

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.

Analyst Ratings

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
AGNC Investment	0	0	0	0	N/A
Dynex Capital	0	0	3	0	3.00

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.

Summary

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.