CYS Investments (CYS) vs. Five Oaks Investment Corp. (OAKS) Head-To-Head Survey

CYS Investments (NYSE: CYS) and Five Oaks Investment Corp. (NYSE:OAKS) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Earnings & Valuation

This table compares CYS Investments and Five Oaks Investment Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CYS Investments $6.14 million 212.55 -$37.94 million ($0.25) -34.40
Five Oaks Investment Corp. $26.49 million 3.87 $14.83 million $0.67 6.91

Five Oaks Investment Corp. has higher revenue and earnings than CYS Investments. CYS Investments is trading at a lower price-to-earnings ratio than Five Oaks Investment Corp., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CYS Investments and Five Oaks Investment Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CYS Investments 1 3 0 0 1.75
Five Oaks Investment Corp. 0 2 0 0 2.00

CYS Investments presently has a consensus price target of $8.00, indicating a potential downside of 6.98%. Given CYS Investments’ higher probable upside, research analysts plainly believe CYS Investments is more favorable than Five Oaks Investment Corp..

Profitability

This table compares CYS Investments and Five Oaks Investment Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CYS Investments -5.86% 12.69% 1.39%
Five Oaks Investment Corp. 12.65% 10.48% 0.48%

Risk & Volatility

CYS Investments has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Five Oaks Investment Corp. has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

62.7% of CYS Investments shares are owned by institutional investors. Comparatively, 33.7% of Five Oaks Investment Corp. shares are owned by institutional investors. 1.0% of CYS Investments shares are owned by company insiders. Comparatively, 0.9% of Five Oaks Investment Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 11.6%. Five Oaks Investment Corp. pays an annual dividend of $0.60 per share and has a dividend yield of 13.0%. CYS Investments pays out -400.0% of its earnings in the form of a dividend. Five Oaks Investment Corp. pays out 89.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

CYS Investments beats Five Oaks Investment Corp. on 8 of the 15 factors compared between the two stocks.

About CYS Investments

CYS Investments, Inc. is a specialty finance company. The Company’s objective is to provide consistent returns to its investors through a combination of dividends and capital appreciation. It invests in agency residential mortgage-backed security (RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period. In addition, it has investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity (GSE) that are collateralized by Agency RMBS. Its investments consist of residential mortgage pass-through securities for which the principal and interest payments are guaranteed by a GSE, such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, or by the United States Government agency, such as Government National Mortgage Association.

About Five Oaks Investment Corp.

Five Oaks Investment Corp. is a real estate investment trust. The Company is focused on investing on a leveraged basis in mortgage and other real estate-related assets, particularly residential mortgage loans and mortgage-backed securities (MBS). The Company invests in various assets, such as Agency residential MBS (RMBS); securitizations backed by multi-family mortgage loans, or Multi-Family MBS; residential mortgage loans and other mortgage-related investments, including mortgage servicing rights (MSRs), and Non-Agency RMBS. The Company finances its investments in Agency RMBS, Multi-Family MBS, residential mortgage loans and Non-Agency RMBS primarily through short-term borrowings structured as repurchase agreements. The Company is externally managed and advised by Oak Circle Capital Partners LLC.

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