CyrusOne (NASDAQ:CONE) and Anworth Mortgage Asset Corporation (ANH) Critical Contrast
CyrusOne (NASDAQ: CONE) and Anworth Mortgage Asset Corporation (NYSE:ANH) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitabiliy, valuation and institutional ownership.
This table compares CyrusOne and Anworth Mortgage Asset Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anworth Mortgage Asset Corporation||44.13%||8.86%||0.96%|
Institutional & Insider Ownership
99.3% of CyrusOne shares are held by institutional investors. Comparatively, 59.7% of Anworth Mortgage Asset Corporation shares are held by institutional investors. 1.6% of CyrusOne shares are held by company insiders. Comparatively, 1.9% of Anworth Mortgage Asset Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
CyrusOne pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 10.0%. CyrusOne pays out -541.9% of its earnings in the form of a dividend. Anworth Mortgage Asset Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anworth Mortgage Asset Corporation has raised its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
CyrusOne has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.
Earnings and Valuation
This table compares CyrusOne and Anworth Mortgage Asset Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CyrusOne||$597.40 million||7.76||$296.10 million||($0.31)||-187.03|
|Anworth Mortgage Asset Corporation||$72.06 million||7.96||$60.25 million||$0.63||9.52|
CyrusOne has higher revenue and earnings than Anworth Mortgage Asset Corporation. CyrusOne is trading at a lower price-to-earnings ratio than Anworth Mortgage Asset Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for CyrusOne and Anworth Mortgage Asset Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anworth Mortgage Asset Corporation||0||1||0||0||2.00|
CyrusOne presently has a consensus target price of $59.08, suggesting a potential upside of 1.89%. Anworth Mortgage Asset Corporation has a consensus target price of $6.00, suggesting a potential upside of 0.00%. Given CyrusOne’s stronger consensus rating and higher probable upside, equities analysts plainly believe CyrusOne is more favorable than Anworth Mortgage Asset Corporation.
CyrusOne beats Anworth Mortgage Asset Corporation on 9 of the 17 factors compared between the two stocks.
CyrusOne Inc. is a real estate investment trust. The Company is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant data center properties. The Company’s data centers are generally purpose-built facilities with redundant power and cooling. The CyrusOne National IX Platform (the National IX Platform) delivers interconnection across states and between metro-enabled sites within its footprint and beyond. The Company has data centers in the United States, London and Singapore. As of December 31, 2016, the Company provided mission-critical data center facilities for 932 customers in 35 data centers and two recovery centers in 11 distinct markets (nine cities in the United States, London and Singapore) with approximately 3,904,000 net rentable square feet (NRSF). The Company provides round the clock security guard monitoring with customizable security features. As of December 31, 2016, the Company had approximately 1,657,000 NRSF under development.
About Anworth Mortgage Asset Corporation
Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.
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