Apollo Commercial Real Estate Finance (NYSE:ARI) versus AGNC Investment (NASDAQ:AGNCN) Head-To-Head Analysis

Apollo Commercial Real Estate Finance (NYSE:ARI) and AGNC Investment (NASDAQ:AGNCN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 0.6% of Apollo Commercial Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Apollo Commercial Real Estate Finance and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Commercial Real Estate Finance	1	3	0	0	1.75
AGNC Investment	0	0	0	0	N/A

Apollo Commercial Real Estate Finance currently has a consensus target price of $10.38, suggesting a potential upside of 2.42%. Given Apollo Commercial Real Estate Finance’s higher possible upside, analysts plainly believe Apollo Commercial Real Estate Finance is more favorable than AGNC Investment.

Valuation & Earnings

This table compares Apollo Commercial Real Estate Finance and AGNC Investment’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Commercial Real Estate Finance	$344.59 million	4.18	$58.13 million	($0.78)	-12.99
AGNC Investment	$847.00 million	N/A	N/A	N/A	N/A

Apollo Commercial Real Estate Finance has higher earnings, but lower revenue than AGNC Investment.

Profitability

This table compares Apollo Commercial Real Estate Finance and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Commercial Real Estate Finance	-28.20%	5.88%	1.38%
AGNC Investment	N/A	N/A	N/A

Dividends

Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 13.8%. AGNC Investment pays an annual dividend of $1.75 per share and has a dividend yield of 6.9%. Apollo Commercial Real Estate Finance pays out -179.5% of its earnings in the form of a dividend.

Summary

Apollo Commercial Real Estate Finance beats AGNC Investment on 7 of the 9 factors compared between the two stocks.

About Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market 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 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 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.