Analyzing Ellington Financial (EFC) and Its Peers
Ellington Financial (NYSE: EFC) is one of 26 publicly-traded companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its peers? We will compare Ellington Financial to similar businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, profitability and dividends.
Ellington Financial pays an annual dividend of $1.80 per share and has a dividend yield of 11.6%. Ellington Financial pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail & Mortgage Banks” companies pay a dividend yield of 1.6% and pay out 28.4% of their earnings in the form of a dividend.
Volatility and Risk
Ellington Financial has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Ellington Financial’s peers have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.
Institutional and Insider Ownership
50.5% of Ellington Financial shares are held by institutional investors. Comparatively, 54.9% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 10.6% of Ellington Financial shares are held by insiders. Comparatively, 12.9% of shares of all “Retail & Mortgage Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Ellington Financial and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ellington Financial Competitors||158||556||513||23||2.32|
Ellington Financial currently has a consensus target price of $18.75, indicating a potential upside of 20.42%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 27.33%. Given Ellington Financial’s peers higher probable upside, analysts clearly believe Ellington Financial has less favorable growth aspects than its peers.
This table compares Ellington Financial and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ellington Financial Competitors||14.79%||-27.41%||0.87%|
Valuation & Earnings
This table compares Ellington Financial and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ellington Financial||$69.62 million||N/A||22.24|
|Ellington Financial Competitors||$678.45 million||$169.32 million||11.72|
Ellington Financial’s peers have higher revenue and earnings than Ellington Financial. Ellington Financial is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Ellington Financial Company Profile
Ellington Financial LLC is a specialty finance company that acquires and manages mortgage-related and other financial assets. The Company’s targeted assets include residential mortgage-backed securities (RMBS), backed by loans for which the principal and interest payments are not guaranteed by a United States Government agency or a United States Government-sponsored entity, collectively referred to as non-Agency RMBS; RMBS for which the principal and interest payments are guaranteed by the United States government agency or the United States government-sponsored entity (Agency RMBS); consumer loans and asset-backed securities (ABS) backed by consumer loans; commercial mortgage-backed securities (CMBS) commercial mortgage loans and other commercial real estate debt; residential mortgage loans; collateralized loan obligations (CLOs); corporate debt and equity, including distressed debt and equity, and mortgage-related derivatives.
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