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

Risk and Volatility

CYS Investments has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, CYS Investments’ rivals have a beta of 0.71, indicating that their average share price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

62.7% of CYS Investments shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are owned by institutional investors. 1.0% of CYS Investments shares are owned by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies 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

CYS Investments pays an annual dividend of $1.00 per share and has a dividend yield of 11.5%. CYS Investments pays out -400.0% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend. CYS Investments is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares CYS Investments and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CYS Investments $6.14 million N/A -34.84
CYS Investments Competitors $626.30 million $243.53 million 1.57

CYS Investments’ rivals have higher revenue and earnings than CYS Investments. CYS Investments is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares CYS Investments and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CYS Investments -5.86% 12.69% 1.39%
CYS Investments Competitors 49.20% 10.70% 2.78%

Analyst Recommendations

This is a summary of current ratings and target prices for CYS Investments and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CYS Investments 1 3 0 0 1.75
CYS Investments Competitors 201 1044 922 44 2.37

CYS Investments currently has a consensus price target of $8.00, suggesting a potential downside of 8.15%. As a group, “Mortgage REITs” companies have a potential upside of 2.45%. Given CYS Investments’ rivals stronger consensus rating and higher probable upside, analysts clearly believe CYS Investments has less favorable growth aspects than its rivals.

Summary

CYS Investments rivals beat CYS Investments on 9 of the 14 factors compared.

CYS Investments Company Profile

CYS Investments, Inc. is a specialty finance company. The Company’s objective is to provide consistent returns to its investors through a combination of dividends and capital appreciation. It invests in agency residential mortgage-backed security (RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period. In addition, it has investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity (GSE) that are collateralized by Agency RMBS. Its investments consist of residential mortgage pass-through securities for which the principal and interest payments are guaranteed by a GSE, such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, or by the United States Government agency, such as Government National Mortgage Association.

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