Contrasting American Capital Agency Corp. (AGNC) and Manhattan Bridge Capital (LOAN)
American Capital Agency Corp. (NASDAQ: AGNC) and Manhattan Bridge Capital (NASDAQ:LOAN) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.
Valuation and Earnings
This table compares American Capital Agency Corp. and Manhattan Bridge Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|American Capital Agency Corp.||$1.70 billion||4.47||$1.72 billion||$4.84||4.41|
|Manhattan Bridge Capital||$4.21 million||11.26||$3.08 million||$0.38||15.40|
American Capital Agency Corp. has higher revenue and earnings than Manhattan Bridge Capital. American Capital Agency Corp. is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
60.5% of American Capital Agency Corp. shares are held by institutional investors. Comparatively, 11.4% of Manhattan Bridge Capital shares are held by institutional investors. 0.5% of American Capital Agency Corp. shares are held by company insiders. Comparatively, 32.3% of Manhattan Bridge Capital shares are held by company 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.
This is a breakdown of recent ratings and price targets for American Capital Agency Corp. and Manhattan Bridge Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Capital Agency Corp.||1||5||2||0||2.13|
|Manhattan Bridge Capital||0||0||1||0||3.00|
American Capital Agency Corp. presently has a consensus price target of $19.68, indicating a potential downside of 7.83%. Manhattan Bridge Capital has a consensus price target of $7.25, indicating a potential upside of 23.93%. Given Manhattan Bridge Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Manhattan Bridge Capital is more favorable than American Capital Agency Corp..
This table compares American Capital Agency Corp. and Manhattan Bridge Capital’s 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%|
|Manhattan Bridge Capital||59.95%||13.39%||8.37%|
Risk & Volatility
American Capital Agency Corp. has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Manhattan Bridge Capital has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.
American Capital Agency Corp. pays an annual dividend of $2.16 per share and has a dividend yield of 10.1%. Manhattan Bridge Capital pays an annual dividend of $0.41 per share and has a dividend yield of 7.0%. American Capital Agency Corp. pays out 44.6% of its earnings in the form of a dividend. Manhattan Bridge Capital pays out 107.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Capital Agency Corp. is clearly the better dividend stock, given its higher yield and lower payout ratio.
American Capital Agency Corp. Company Profile
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).
Manhattan Bridge Capital Company Profile
Manhattan Bridge Capital, Inc. (MBC) is a real estate finance company that specializes in originating, servicing and managing a portfolio of first mortgage loans. The Company offers short-term, secured, non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area. Its primary business objective is to grow its loan portfolio while protecting and preserving capital in a manner that provides for risk-adjusted returns to its shareholders over the long term through dividends. It intends to achieve this objective by continuing to selectively originate, fund loans secured by first mortgages on residential real estate held for investment located in the New York metropolitan area, and to manage and service its portfolio in a manner designed to generate risk-adjusted returns across a range of market conditions and economic cycles. Its loan portfolio includes various construction loans.
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