PennyMac Mortgage Investment Trust (NYSE: PMT) is one of 38 public companies in the “Mortgage REITs” industry, but how does it compare to its rivals? We will compare PennyMac Mortgage Investment Trust to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares PennyMac Mortgage Investment Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennyMac Mortgage Investment Trust 37.97% 8.67% 1.95%
PennyMac Mortgage Investment Trust Competitors 49.20% 10.70% 2.78%

Dividends

PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 11.1%. PennyMac Mortgage Investment Trust pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.1% and pay out 80.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for PennyMac Mortgage Investment Trust and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennyMac Mortgage Investment Trust 0 4 3 0 2.43
PennyMac Mortgage Investment Trust Competitors 199 1034 915 41 2.36

PennyMac Mortgage Investment Trust currently has a consensus price target of $16.95, suggesting a potential upside of 0.12%. As a group, “Mortgage REITs” companies have a potential upside of 3.27%. Given PennyMac Mortgage Investment Trust’s rivals higher possible upside, analysts plainly believe PennyMac Mortgage Investment Trust has less favorable growth aspects than its rivals.

Risk and Volatility

PennyMac Mortgage Investment Trust has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust’s rivals have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares PennyMac Mortgage Investment Trust and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PennyMac Mortgage Investment Trust $318.72 million N/A 9.90
PennyMac Mortgage Investment Trust Competitors $320.94 million $123.24 million 1.58

PennyMac Mortgage Investment Trust’s rivals have higher revenue and earnings than PennyMac Mortgage Investment Trust. PennyMac Mortgage Investment Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

62.5% of PennyMac Mortgage Investment Trust shares are held by institutional investors. Comparatively, 58.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 1.8% of PennyMac Mortgage Investment Trust shares are held by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

PennyMac Mortgage Investment Trust rivals beat PennyMac Mortgage Investment Trust on 9 of the 14 factors compared.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The Company conducts all of its operations, and makes all of its investments, through PennyMac Operating Partnership, L.P. (its Operating Partnership) and its subsidiaries. It operates through two segments: correspondent production and investment activities. Its investment activities segment represents the Company’s investments in mortgage-related assets. The correspondent production segment represents the Company’s operations aimed at serving as an intermediary between mortgage lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality mortgage loans either directly or in the form of MBS, using the services of PNMAC Capital Management (the Manager or PCM) and PennyMac Loan Services, LLC (PLS), both indirect subsidiaries of PennyMac Financial Services, Inc. (PFSI or PennyMac).

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