Comparing Arbor Realty Trust (NYSE:ABR) & AGNC Investment (NASDAQ:AGNCP)

Arbor Realty Trust (NYSE:ABR) and AGNC Investment (NASDAQ:AGNCP) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Arbor Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 13.4%. AGNC Investment pays an annual dividend of $1.53 per share and has a dividend yield of 6.0%. Arbor Realty Trust pays out 971.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

57.3% of Arbor Realty Trust shares are held by institutional investors. 4.2% of Arbor Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Arbor Realty Trust and AGNC Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	4	1	1	0	1.50
AGNC Investment	0	0	0	0	0.00

Arbor Realty Trust currently has a consensus target price of $6.00, suggesting a potential upside of 17.88%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Arbor Realty Trust is more favorable than AGNC Investment.

Profitability

This table compares Arbor Realty Trust and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	6.24%	7.38%	1.22%
AGNC Investment	N/A	N/A	N/A

Earnings & Valuation

This table compares Arbor Realty Trust and AGNC Investment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$472.13 million	2.01	$148.80 million	$0.07	72.71
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

Arbor Realty Trust has higher earnings, but lower revenue than AGNC Investment.

Summary

Arbor Realty Trust beats AGNC Investment on 9 of the 11 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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 formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.