Granite Point Mortgage Trust (NASDAQ: GPMT) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Granite Point Mortgage Trust and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Point Mortgage Trust 54.39% 8.94% 3.09%
AG Mortgage Investment Trust 85.21% 11.97% 2.12%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Granite Point Mortgage Trust and AG Mortgage Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Point Mortgage Trust 0 2 2 0 2.50
AG Mortgage Investment Trust 0 3 0 0 2.00

Granite Point Mortgage Trust presently has a consensus price target of $20.00, indicating a potential upside of 4.88%. AG Mortgage Investment Trust has a consensus price target of $18.17, indicating a potential downside of 6.31%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Granite Point Mortgage Trust is more favorable than AG Mortgage Investment Trust.

Valuation and Earnings

This table compares Granite Point Mortgage Trust and AG Mortgage Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Granite Point Mortgage Trust N/A N/A N/A N/A N/A
AG Mortgage Investment Trust $119.69 million 4.51 $89.88 million $3.23 6.00

AG Mortgage Investment Trust has higher revenue and earnings than Granite Point Mortgage Trust.

Insider and Institutional Ownership

64.7% of AG Mortgage Investment Trust shares are owned by institutional investors. 1.6% of AG Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 9.8%. Granite Point Mortgage Trust does not pay a dividend. AG Mortgage Investment Trust pays out 58.8% of its earnings in the form of a dividend.

Summary

AG Mortgage Investment Trust beats Granite Point Mortgage Trust on 6 of the 11 factors compared between the two stocks.

Granite Point Mortgage Trust Company Profile

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.

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