Contrasting Angel Oak Mortgage REIT (NYSE:AOMR) & AG Mortgage Investment Trust (NYSE:MITT)

Angel Oak Mortgage REIT (NYSE:AOMR) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Volatility and Risk

Angel Oak Mortgage REIT has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Institutional & Insider Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 13.1%. AG Mortgage Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 10.8%. Angel Oak Mortgage REIT pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has raised its dividend for 2 consecutive years. Angel Oak Mortgage REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Angel Oak Mortgage REIT and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	29.42%	4.78%	0.49%
AG Mortgage Investment Trust	10.70%	13.21%	0.59%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Angel Oak Mortgage REIT and AG Mortgage Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	2	4	0	2.67
AG Mortgage Investment Trust	0	1	4	0	2.80

Angel Oak Mortgage REIT currently has a consensus price target of $11.60, indicating a potential upside of 18.37%. AG Mortgage Investment Trust has a consensus price target of $8.50, indicating a potential upside of 8.83%. Given Angel Oak Mortgage REIT’s higher probable upside, research analysts clearly believe Angel Oak Mortgage REIT is more favorable than AG Mortgage Investment Trust.

Valuation and Earnings

This table compares Angel Oak Mortgage REIT and AG Mortgage Investment Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$110.43 million	2.11	$28.75 million	$1.54	6.36
AG Mortgage Investment Trust	$408.49 million	0.61	$55.74 million	$0.86	9.08

AG Mortgage Investment Trust has higher revenue and earnings than Angel Oak Mortgage REIT. Angel Oak Mortgage REIT is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.

Summary

AG Mortgage Investment Trust beats Angel Oak Mortgage REIT on 9 of the 16 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 incorporated in 2018 and is headquartered in Atlanta, Georgia.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.