Analyzing Great Ajax Corp. (AJX) & Its Competitors
Great Ajax Corp. (NYSE: AJX) is one of 38 public companies in the “Mortgage REITs” industry, but how does it compare to its competitors? We will compare Great Ajax Corp. to similar companies based on the strength of its valuation, institutional ownership, earnings, dividends, profitability, analyst recommendations and risk.
Institutional & Insider Ownership
75.3% of Great Ajax Corp. shares are owned by institutional investors. Comparatively, 58.0% of shares of all “Mortgage REITs” companies are owned by institutional investors. 3.8% of Great Ajax Corp. shares are owned by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Great Ajax Corp. pays an annual dividend of $1.20 per share and has a dividend yield of 8.5%. Great Ajax Corp. pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.6% of their earnings in the form of a dividend.
Volatility and Risk
Great Ajax Corp. has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Great Ajax Corp.’s competitors have a beta of 0.72, meaning that their average share price is 28% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Great Ajax Corp. and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Ajax Corp.||0||2||2||0||2.50|
|Great Ajax Corp. Competitors||199||1038||917||41||2.36|
Great Ajax Corp. presently has a consensus target price of $15.13, indicating a potential upside of 6.51%. As a group, “Mortgage REITs” companies have a potential upside of 2.05%. Given Great Ajax Corp.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Great Ajax Corp. is more favorable than its competitors.
This table compares Great Ajax Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Ajax Corp.||58.46%||10.22%||3.02%|
|Great Ajax Corp. Competitors||49.20%||10.70%||2.78%|
Earnings and Valuation
This table compares Great Ajax Corp. and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Great Ajax Corp.||$50.65 million||N/A||9.04|
|Great Ajax Corp. Competitors||$626.30 million||$243.53 million||1.66|
Great Ajax Corp.’s competitors have higher revenue and earnings than Great Ajax Corp.. Great Ajax Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Great Ajax Corp. beats its competitors on 10 of the 14 factors compared.
Great Ajax Corp. Company Profile
Great Ajax Corp. is an externally managed real estate company. The Company is focused on acquiring, investing in and managing a portfolio of re-performing and non-performing mortgage loans secured by single-family residences and single-family properties. Its segment is focused on non-performing mortgages and re-performing mortgages. It also invests in loans secured by multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. It also holds real estate-owned properties (REO) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. It is managed by Thetis Asset Management LLC, an affiliated entity. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.
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