Western Asset Mortgage Capital Corporation (NYSE: WMC) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it weigh in compared to its competitors? We will compare Western Asset Mortgage Capital Corporation to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings for Western Asset Mortgage Capital Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Asset Mortgage Capital Corporation 0 2 0 0 2.00
Western Asset Mortgage Capital Corporation Competitors 199 1032 914 41 2.36

Western Asset Mortgage Capital Corporation presently has a consensus price target of $10.00, indicating a potential downside of 4.40%. As a group, “Mortgage REITs” companies have a potential upside of 3.89%. Given Western Asset Mortgage Capital Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Western Asset Mortgage Capital Corporation has less favorable growth aspects than its competitors.

Profitability

This table compares Western Asset Mortgage Capital Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Asset Mortgage Capital Corporation 27.34% 5.97% 0.83%
Western Asset Mortgage Capital Corporation Competitors 48.24% 10.67% 2.78%

Insider and Institutional Ownership

40.2% of Western Asset Mortgage Capital Corporation shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.4% of Western Asset Mortgage Capital Corporation 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 company will outperform the market over the long term.

Earnings & Valuation

This table compares Western Asset Mortgage Capital Corporation and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Western Asset Mortgage Capital Corporation $59.85 million N/A 12.76
Western Asset Mortgage Capital Corporation Competitors $320.94 million $123.24 million 1.59

Western Asset Mortgage Capital Corporation’s competitors have higher revenue and earnings than Western Asset Mortgage Capital Corporation. Western Asset Mortgage Capital Corporation 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.

Dividends

Western Asset Mortgage Capital Corporation pays an annual dividend of $1.24 per share and has a dividend yield of 11.9%. Western Asset Mortgage Capital Corporation pays out 151.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Volatility and Risk

Western Asset Mortgage Capital Corporation has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Western Asset Mortgage Capital Corporation’s competitors have a beta of 0.72, meaning that their average share price is 28% less volatile than the S&P 500.

Summary

Western Asset Mortgage Capital Corporation competitors beat Western Asset Mortgage Capital Corporation on 12 of the 14 factors compared.

About Western Asset Mortgage Capital Corporation

Western Asset Mortgage Capital Corporation is a real estate investment trust. The Company is focused on investing in, financing and managing a diversified portfolio of real estate-related securities, whole-loans and other financial assets. The Company’s portfolio includes Agency residential mortgage-backed securities (RMBS), including Mortgage pass-through certificates, Agency derivatives, Agency Interest-Only Strips and Agency collateralized mortgage obligations (CMOs); Non-Agency RMBS, and Agency commercial mortgage-backed securities (CMBS), Non-Agency CMBS, Non United States CMBS and asset-backed securities (ABS), as well as Residential and Commercial Whole-Loans. The Company may utilize to-be-announced forward contracts (TBAs), in order to invest in Agency RMBS. The Company’s manager is Western Asset Management Company.

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