Federal Agricultural Mortgage (NYSE:AGM – Get Free Report) and Finance of America Companies (NYSE:FOA – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Profitability
This table compares Federal Agricultural Mortgage and Finance of America Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Agricultural Mortgage | 13.14% | 18.86% | 0.65% |
| Finance of America Companies | N/A | 0.96% | 0.01% |
Volatility and Risk
Federal Agricultural Mortgage has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Agricultural Mortgage | $1.62 billion | 1.32 | $207.19 million | $16.98 | 11.59 |
| Finance of America Companies | $338.17 million | 0.82 | $15.49 million | $6.11 | 4.11 |
Federal Agricultural Mortgage has higher revenue and earnings than Finance of America Companies. Finance of America Companies is trading at a lower price-to-earnings ratio than Federal Agricultural Mortgage, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Federal Agricultural Mortgage and Finance of America Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Agricultural Mortgage | 0 | 1 | 0 | 0 | 2.00 |
| Finance of America Companies | 0 | 1 | 1 | 0 | 2.50 |
Federal Agricultural Mortgage currently has a consensus target price of $217.00, suggesting a potential upside of 10.24%. Finance of America Companies has a consensus target price of $27.50, suggesting a potential upside of 9.60%. Given Federal Agricultural Mortgage’s higher possible upside, analysts clearly believe Federal Agricultural Mortgage is more favorable than Finance of America Companies.
Institutional & Insider Ownership
68.0% of Federal Agricultural Mortgage shares are held by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are held by institutional investors. 2.2% of Federal Agricultural Mortgage shares are held by insiders. Comparatively, 25.0% of Finance of America Companies 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.
Summary
Federal Agricultural Mortgage beats Finance of America Companies on 9 of the 14 factors compared between the two stocks.
About Federal Agricultural Mortgage
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.
About Finance of America Companies
Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.
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