Head-To-Head Review: AGNC Investment (NASDAQ:AGNCP) vs. AG Mortgage Investment Trust (NYSE:MITT)

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

Dividends

AG Mortgage Investment Trust pays an annual dividend of $0.96 per share and has a dividend yield of 14.4%. AGNC Investment pays an annual dividend of $1.53 per share and has a dividend yield of 6.1%. AG Mortgage Investment Trust pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has raised its dividend for 2 consecutive years. AG Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

27.3% of AG Mortgage Investment Trust shares are held by institutional investors. 3.3% of AG Mortgage Investment Trust shares are held by 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 Recommendations

This is a summary of current ratings and price targets for AG Mortgage Investment Trust and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AG Mortgage Investment Trust	0	3	6	0	2.67
AGNC Investment	0	0	0	0	0.00

AG Mortgage Investment Trust currently has a consensus price target of $8.93, indicating a potential upside of 34.16%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts clearly believe AG Mortgage Investment Trust is more favorable than AGNC Investment.

Valuation & Earnings

This table compares AG Mortgage Investment Trust and AGNC Investment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AG Mortgage Investment Trust	$480.33 million	0.44	$48.67 million	$0.40	16.64
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AG Mortgage Investment Trust	8.55%	15.48%	0.60%
AGNC Investment	N/A	N/A	N/A

Summary

AG Mortgage Investment Trust beats AGNC Investment on 10 of the 12 factors compared between the two stocks.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, 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.