MFA Financial (MFA) vs. The Competition Critical Comparison
MFA Financial (NYSE: MFA) is one of 37 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its peers? We will compare MFA Financial to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, analyst recommendations, valuation and dividends.
Valuation and Earnings
This table compares MFA Financial and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MFA Financial||$376.15 million||N/A||11.22|
|MFA Financial Competitors||$626.30 million||$243.53 million||1.47|
MFA Financial’s peers have higher revenue and earnings than MFA Financial. MFA Financial is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
MFA Financial has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, MFA Financial’s peers have a beta of 0.71, indicating that their average share price is 29% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for MFA Financial and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MFA Financial Competitors||114||842||842||31||2.43|
MFA Financial currently has a consensus target price of $8.50, indicating a potential downside of 2.86%. As a group, “Mortgage REITs” companies have a potential upside of 2.20%. Given MFA Financial’s peers higher probable upside, analysts clearly believe MFA Financial has less favorable growth aspects than its peers.
This table compares MFA Financial and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MFA Financial Competitors||50.41%||10.38%||2.70%|
Insider & Institutional Ownership
80.1% of MFA Financial shares are held by institutional investors. Comparatively, 57.8% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.9% of MFA Financial shares are held by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
MFA Financial pays an annual dividend of $0.80 per share and has a dividend yield of 9.1%. MFA Financial pays out 102.6% 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 80.5% of their earnings in the form of a dividend. MFA Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
MFA Financial peers beat MFA Financial on 9 of the 14 factors compared.
MFA Financial Company Profile
MFA Financial, Inc. is engaged in the real estate finance business. The Company’s subsidiaries invest in residential mortgage assets, including Non-Agency mortgage-backed securities (MBS), Agency MBS, residential whole loans and credit risk transfer (CRT) securities. The Company’s Non-Agency MBS portfolio primarily consists of Legacy Non-Agency MBS and 3 Year Step-up securities. In addition to Non-Agency MBS investments, the Company invests in re-performing and non-performing residential whole loans through its interests in certain consolidated trusts. The mortgages collateralizing its Agency MBS portfolio are predominantly Hybrids, 15-year fixed-rate mortgages and adjustable-rate mortgages (ARMs).
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