Financial Review: AGNC Investment (NASDAQ:AGNCP) & PennyMac Mortgage Investment Trust (NYSE:PMT)

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

Earnings & Valuation

This table compares PennyMac Mortgage Investment Trust and AGNC Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$203.88 million	4.01	$127.87 million	$1.42	6.60
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

PennyMac Mortgage Investment Trust has higher earnings, but lower revenue than AGNC Investment.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PennyMac Mortgage Investment Trust and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	2	4	3	0	2.11
AGNC Investment	0	0	0	0	0.00

PennyMac Mortgage Investment Trust currently has a consensus target price of $11.50, suggesting a potential upside of 22.73%. Given PennyMac Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe PennyMac Mortgage Investment Trust is more favorable than AGNC Investment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	47.79%	12.50%	0.76%
AGNC Investment	N/A	N/A	N/A

Insider & Institutional Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 1.0% of PennyMac Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 17.1%. AGNC Investment pays an annual dividend of $1.53 per share and has a dividend yield of 6.0%. PennyMac Mortgage Investment Trust pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

PennyMac Mortgage Investment Trust beats AGNC Investment on 9 of the 11 factors compared between the two stocks.

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.

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.