AG Mortgage Investment Trust (NYSE: MITT) and CYS Investments (NYSE:CYS) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for AG Mortgage Investment Trust and CYS Investments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AG Mortgage Investment Trust 0 3 0 0 2.00
CYS Investments 2 3 0 0 1.60

AG Mortgage Investment Trust currently has a consensus target price of $18.17, suggesting a potential downside of 5.82%. CYS Investments has a consensus target price of $8.13, suggesting a potential downside of 7.35%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe AG Mortgage Investment Trust is more favorable than CYS Investments.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 9.8%. CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 11.4%. AG Mortgage Investment Trust pays out 58.8% of its earnings in the form of a dividend. CYS Investments pays out -400.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CYS Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

66.6% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 63.6% of CYS Investments shares are owned by institutional investors. 1.6% of AG Mortgage Investment Trust shares are owned by insiders. Comparatively, 1.0% of CYS Investments shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AG Mortgage Investment Trust and CYS Investments’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AG Mortgage Investment Trust $119.69 million 4.48 $89.88 million $3.23 5.97
CYS Investments $6.14 million 216.75 -$37.94 million ($0.25) -35.08

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

Volatility & Risk

AG Mortgage Investment Trust has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, CYS Investments has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
AG Mortgage Investment Trust 85.21% 11.97% 2.12%
CYS Investments -5.86% 12.69% 1.39%

Summary

AG Mortgage Investment Trust beats CYS Investments on 10 of the 14 factors compared between the two stocks.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.

CYS Investments Company Profile

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.

Receive News & Ratings for AG Mortgage Investment Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AG Mortgage Investment Trust Inc. and related companies with MarketBeat.com's FREE daily email newsletter.