Orchid Island Capital (NYSE: ORC) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its peers? We will compare Orchid Island Capital to similar companies based on the strength of its valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Risk and Volatility

Orchid Island Capital has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Orchid Island Capital’s peers have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.

Dividends

Orchid Island Capital pays an annual dividend of $1.68 per share and has a dividend yield of 16.7%. Orchid Island Capital pays out -2,799.5% of its earnings in the form of a dividend. 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. Orchid Island Capital is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Orchid Island Capital and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orchid Island Capital N/A -3.33% -0.35%
Orchid Island Capital Competitors 49.20% 10.70% 2.78%

Valuation & Earnings

This table compares Orchid Island Capital and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Orchid Island Capital $2.97 million N/A -167.81
Orchid Island Capital Competitors $320.94 million $123.24 million 1.58

Orchid Island Capital’s peers have higher revenue and earnings than Orchid Island Capital. Orchid Island Capital is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and target prices for Orchid Island Capital and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orchid Island Capital 0 1 0 0 2.00
Orchid Island Capital Competitors 199 1034 915 41 2.36

As a group, “Mortgage REITs” companies have a potential upside of 3.13%. Given Orchid Island Capital’s peers stronger consensus rating and higher probable upside, analysts clearly believe Orchid Island Capital has less favorable growth aspects than its peers.

Institutional & Insider Ownership

23.6% of Orchid Island Capital shares are held by institutional investors. Comparatively, 58.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.9% of Orchid Island Capital 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, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Orchid Island Capital peers beat Orchid Island Capital on 11 of the 13 factors compared.

Orchid Island Capital Company Profile

Orchid Island Capital, Inc. is a specialty finance company that invests in residential mortgage-backed securities (RMBS). The Company’s business objective is to provide attractive risk-adjusted total returns to its investors over the long term through a combination of capital appreciation and the payment of regular monthly distributions. Its portfolio consists of two categories of Agency RMBS: pass-through Agency RMBS and structured Agency RMBS. It invests in pass-through securities, which are securities secured by residential real property in which payments of both interest and principal on the securities are generally made monthly. The mortgage loans underlying pass-through certificates are classified into three categories, including fixed-rate mortgages, adjustable-rate mortgages (ARMs) and Hybrid ARMs. It invests in structured Agency RMBS, which include collateralized mortgage obligations, interest only securities, inverse interest only securities and principal only securities.

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