AG Mortgage Investment Trust (NYSE:MITT – Get Free Report) and PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
Profitability
This table compares AG Mortgage Investment Trust and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AG Mortgage Investment Trust | 10.13% | 14.42% | 0.59% |
| PennyMac Mortgage Investment Trust | 41.59% | 9.53% | 0.71% |
Analyst Recommendations
This is a breakdown of current ratings for AG Mortgage Investment Trust and PennyMac Mortgage Investment Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AG Mortgage Investment Trust | 0 | 3 | 5 | 0 | 2.63 |
| PennyMac Mortgage Investment Trust | 0 | 5 | 3 | 0 | 2.38 |
Earnings and Valuation
This table compares AG Mortgage Investment Trust and PennyMac Mortgage Investment Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AG Mortgage Investment Trust | $480.33 million | 0.48 | $48.67 million | $0.88 | 8.29 |
| PennyMac Mortgage Investment Trust | $307.46 million | 3.17 | $127.87 million | $0.98 | 11.42 |
PennyMac Mortgage Investment Trust has lower revenue, but higher earnings than AG Mortgage Investment Trust. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than PennyMac Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
AG Mortgage Investment Trust pays an annual dividend of $0.92 per share and has a dividend yield of 12.6%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 14.3%. AG Mortgage Investment Trust pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust pays out 163.3% 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 increased its dividend for 2 consecutive years.
Insider and Institutional Ownership
27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 3.3% of AG Mortgage Investment Trust shares are owned by insiders. Comparatively, 0.9% of PennyMac Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
AG Mortgage Investment Trust has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Summary
AG Mortgage Investment Trust beats PennyMac Mortgage Investment Trust on 9 of the 17 factors compared between the two stocks.
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.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.
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