Financial Comparison: QTS Realty Trust (QTS) and Anworth Mortgage Asset Corporation (ANH)
QTS Realty Trust (NYSE: QTS) and Anworth Mortgage Asset Corporation (NYSE:ANH) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. QTS Realty Trust pays out 390.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anworth Mortgage Asset Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QTS Realty Trust has increased its dividend for 2 consecutive years and Anworth Mortgage Asset Corporation has increased its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
QTS Realty Trust has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for QTS Realty Trust and Anworth Mortgage Asset Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||0||4||9||0||2.69|
|Anworth Mortgage Asset Corporation||0||1||0||0||2.00|
QTS Realty Trust presently has a consensus target price of $56.92, indicating a potential upside of 5.81%. Anworth Mortgage Asset Corporation has a consensus target price of $6.00, indicating a potential downside of 0.99%. Given QTS Realty Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe QTS Realty Trust is more favorable than Anworth Mortgage Asset Corporation.
Valuation and Earnings
This table compares QTS Realty Trust and Anworth Mortgage Asset Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|QTS Realty Trust||$422.74 million||6.21||$158.07 million||$0.40||134.48|
|Anworth Mortgage Asset Corporation||$83.05 million||7.12||$61.46 million||$0.63||9.62|
QTS Realty Trust has higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation is trading at a lower price-to-earnings ratio than QTS Realty Trust, indicating that it is currently the more affordable of the two stocks.
This table compares QTS Realty Trust and Anworth Mortgage Asset Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||4.60%||2.04%||0.93%|
|Anworth Mortgage Asset Corporation||44.13%||8.83%||0.96%|
Institutional & Insider Ownership
56.2% of Anworth Mortgage Asset Corporation shares are owned by institutional investors. 17.3% of QTS Realty Trust shares are owned by company insiders. Comparatively, 1.9% of Anworth Mortgage Asset Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
QTS Realty Trust Company Profile
QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.
Anworth Mortgage Asset Corporation Company Profile
Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.
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