American Capital Agency Corp. (NASDAQ: AGNC) is one of 38 public companies in the “Mortgage REITs” industry, but how does it contrast to its competitors? We will compare American Capital Agency Corp. to similar companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

American Capital Agency Corp. has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, American Capital Agency Corp.’s competitors have a beta of 0.72, indicating that their average stock price is 28% less volatile than the S&P 500.

Dividends

American Capital Agency Corp. pays an annual dividend of $2.16 per share and has a dividend yield of 10.2%. American Capital Agency Corp. pays out 44.6% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.2% and pay out 80.6% of their earnings in the form of a dividend. American Capital Agency Corp. is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares American Capital Agency Corp. and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Capital Agency Corp. $1.70 billion N/A 4.37
American Capital Agency Corp. Competitors $320.94 million $123.24 million 1.59

American Capital Agency Corp. has higher revenue, but lower earnings than its competitors. American Capital Agency Corp. is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares American Capital Agency Corp. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Capital Agency Corp. 161.49% 12.08% 1.55%
American Capital Agency Corp. Competitors 48.24% 10.67% 2.78%

Analyst Recommendations

This is a summary of current ratings and target prices for American Capital Agency Corp. and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital Agency Corp. 1 5 2 0 2.13
American Capital Agency Corp. Competitors 199 1032 914 41 2.36

American Capital Agency Corp. currently has a consensus price target of $19.68, indicating a potential downside of 6.91%. As a group, “Mortgage REITs” companies have a potential upside of 4.27%. Given American Capital Agency Corp.’s competitors stronger consensus rating and higher possible upside, analysts plainly believe American Capital Agency Corp. has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

60.8% of American Capital Agency Corp. shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.5% of American Capital Agency Corp. shares are owned by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About American Capital Agency Corp.

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).

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