Pacific Office Properties Trust (OTCMKTS:PCFO) versus Dynex Capital (NYSE:DX) Critical Analysis

Pacific Office Properties Trust (OTCMKTS:PCFO) and Dynex Capital (NYSE:DX) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Institutional & Insider Ownership

38.3% of Dynex Capital shares are held by institutional investors. 24.1% of Pacific Office Properties Trust shares are held by insiders. Comparatively, 2.5% of Dynex Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Pacific Office Properties Trust and Dynex Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Office Properties Trust	N/A	N/A	N/A
Dynex Capital	-2.95%	-6.04%	-0.82%

Analyst Ratings

This is a summary of current ratings and target prices for Pacific Office Properties Trust and Dynex Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Office Properties Trust	0	0	0	0	N/A
Dynex Capital	0	2	3	0	2.60

Dynex Capital has a consensus price target of $13.63, indicating a potential upside of 16.50%. Given Dynex Capital’s higher possible upside, analysts clearly believe Dynex Capital is more favorable than Pacific Office Properties Trust.

Earnings and Valuation

This table compares Pacific Office Properties Trust and Dynex Capital’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Office Properties Trust	N/A	N/A	N/A	N/A	N/A
Dynex Capital	$26.75 million	25.85	-$6.13 million	($0.28)	-41.77

Pacific Office Properties Trust has higher earnings, but lower revenue than Dynex Capital.

About Pacific Office Properties Trust

Pacific Office Properties Trust, Inc. is a real estate investment trust, which owns and operates office properties. Its portfolio includes Davies Pacific Center, Pacific Business News Building, Pan Am Building, Waterfront Plaza, and City Square. The company was founded on March 19, 2008 and is headquartered in Honolulu, HI.

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.