AG Mortgage Investment Trust (NYSE:MITT) and Ventas (NYSE:VTR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Risk & Volatility

AG Mortgage Investment Trust has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Ventas has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $2.00 per share and has a dividend yield of 12.6%. Ventas pays an annual dividend of $3.17 per share and has a dividend yield of 4.9%. Ventas pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares AG Mortgage Investment Trust and Ventas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AG Mortgage Investment Trust $156.48 million 3.31 $1.57 million N/A N/A
Ventas $3.75 billion 6.14 $409.46 million $4.07 15.76

Ventas has higher revenue and earnings than AG Mortgage Investment Trust.

Institutional and Insider Ownership

66.9% of AG Mortgage Investment Trust shares are held by institutional investors. Comparatively, 87.2% of Ventas shares are held by institutional investors. 1.4% of AG Mortgage Investment Trust shares are held by company insiders. Comparatively, 1.4% of Ventas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for AG Mortgage Investment Trust and Ventas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AG Mortgage Investment Trust 0 0 0 0 N/A
Ventas 1 12 0 0 1.92

Ventas has a consensus target price of $59.46, indicating a potential downside of 7.31%. Given Ventas’ higher probable upside, analysts plainly believe Ventas is more favorable than AG Mortgage Investment Trust.

Profitability

This table compares AG Mortgage Investment Trust and Ventas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AG Mortgage Investment Trust 14.17% 12.28% 1.77%
Ventas 12.19% 4.04% 1.86%

Summary

Ventas beats AG Mortgage Investment Trust on 9 of the 14 factors compared between the two stocks.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc., a real estate investment trust, focuses on investing in, acquiring, and managing a portfolio of residential mortgage-backed securities, other real estate-related securities, and financial assets in the United States. It operates through two segments, Securities and Loans, and Single-Family Rental Properties. The Securities and Loans segment invests in residential mortgage-backed securities; residential investments, including credit risk transfer securities, mortgage-backed securities collateralized by re-performing mortgage loans and/or non-performing mortgage loans, and new origination loans, as well as re-performing mortgage loans and/or non-performing mortgage loans; commercial investments, such as commercial mortgage-backed securities (CMBS), interest-only securities, and CMBS principal-only securities; and asset backed securities comprising investment grade and non-investment grade debt and equity tranches of securitizations collateralized by various asset classes. The Single-Family Rental Properties segment operates single-family rental properties, as well as provides property management services. Its portfolio includes 1,225 properties located in the Southeast United States. 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 2011 and is based in New York, New York.

About Ventas

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,200 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. References to “Ventas” or the “Company” mean Ventas, Inc. and its consolidated subsidiaries unless otherwise expressly noted.

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