LXP Industrial Trust (NYSE:LXP) vs. PennyMac Mortgage Investment Trust (NYSE:PMT) Critical Survey

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

Dividends

LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.9%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 11.5%. LXP Industrial Trust pays out 650.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust pays out 99.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust has raised its dividend for 4 consecutive years. PennyMac Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares LXP Industrial Trust and PennyMac Mortgage Investment Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LXP Industrial Trust	$340.50 million	7.58	$30.38 million	$0.08	109.69
PennyMac Mortgage Investment Trust	$429.02 million	2.81	$199.65 million	$1.61	8.64

PennyMac Mortgage Investment Trust has higher revenue and earnings than LXP Industrial Trust. PennyMac Mortgage Investment Trust is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LXP Industrial Trust	8.92%	1.37%	0.76%
PennyMac Mortgage Investment Trust	46.54%	14.15%	1.45%

Volatility and Risk

LXP Industrial Trust has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. Comparatively, 67.4% of PennyMac Mortgage Investment Trust shares are held by institutional investors. 2.0% of LXP Industrial Trust shares are held by company insiders. Comparatively, 0.9% of PennyMac Mortgage Investment 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 ratings and target prices for LXP Industrial Trust and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	0	1	0	3.00
PennyMac Mortgage Investment Trust	0	3	2	0	2.40

LXP Industrial Trust currently has a consensus price target of $11.00, indicating a potential upside of 25.36%. PennyMac Mortgage Investment Trust has a consensus price target of $14.58, indicating a potential upside of 4.84%. Given LXP Industrial Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe LXP Industrial Trust is more favorable than PennyMac Mortgage Investment Trust.

Summary

PennyMac Mortgage Investment Trust beats LXP Industrial Trust on 10 of the 17 factors compared between the two stocks.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

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.