Arlington Asset Investment Corp (NYSE: AI) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it compare to its competitors? We will compare Arlington Asset Investment Corp to related businesses based on the strength of its risk, institutional ownership, valuation, dividends, profitability, analyst recommendations and earnings.

Volatility & Risk

Arlington Asset Investment Corp has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Arlington Asset Investment Corp’s competitors have a beta of 1.23, meaning that their average share price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Arlington Asset Investment Corp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Arlington Asset Investment Corp $45.40 million N/A -8.74
Arlington Asset Investment Corp Competitors $3.00 billion $961.92 million 6.47

Arlington Asset Investment Corp’s competitors have higher revenue and earnings than Arlington Asset Investment Corp. Arlington Asset Investment Corp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Arlington Asset Investment Corp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arlington Asset Investment Corp 0 2 2 0 2.50
Arlington Asset Investment Corp Competitors 357 1775 1792 62 2.39

Arlington Asset Investment Corp presently has a consensus target price of $14.94, suggesting a potential upside of 13.94%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.56%. Given Arlington Asset Investment Corp’s stronger consensus rating and higher possible upside, research analysts clearly believe Arlington Asset Investment Corp is more favorable than its competitors.

Dividends

Arlington Asset Investment Corp pays an annual dividend of $2.20 per share and has a dividend yield of 16.8%. Arlington Asset Investment Corp pays out -146.7% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.8% and pay out 49.4% of their earnings in the form of a dividend. Arlington Asset Investment Corp is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

38.6% of Arlington Asset Investment Corp shares are held by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 2.7% of Arlington Asset Investment Corp shares are held by insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Arlington Asset Investment Corp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arlington Asset Investment Corp -33.84% -10.44% -0.93%
Arlington Asset Investment Corp Competitors -46.91% 10.48% 5.74%

Summary

Arlington Asset Investment Corp competitors beat Arlington Asset Investment Corp on 7 of the 13 factors compared.

Arlington Asset Investment Corp Company Profile

Arlington Asset Investment Corp. is an investment company. The Company focuses on acquiring and holding a levered portfolio of residential mortgage-backed securities (MBS), consisting of agency MBS and private-label MBS. Agency MBS include residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a United States Government agency or government-sponsored enterprise (GSE), such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Private-label MBS, or non-agency MBS, include residential MBS that are not guaranteed by a GSE or the United States Government. The Company funds its investments primarily through short-term financing arrangements. The Company purchases agency MBS either in initial offerings or in the secondary market through broker-dealers or similar entities. It may invest in agency MBS collateralized by adjustable-rate mortgage loans (ARMs) or hybrid ARMs.

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