Anworth Mortgage Asset Corporation (NYSE: ANH) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its peers? We will compare Anworth Mortgage Asset Corporation to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Volatility & Risk

Anworth Mortgage Asset Corporation has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation’s peers have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Anworth Mortgage Asset Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anworth Mortgage Asset Corporation 0 1 0 0 2.00
Anworth Mortgage Asset Corporation Competitors 26 206 552 20 2.70

Anworth Mortgage Asset Corporation currently has a consensus target price of $6.00, suggesting a potential downside of 1.15%. As a group, “Specialized REITs” companies have a potential upside of 12.67%. Given Anworth Mortgage Asset Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Anworth Mortgage Asset Corporation has less favorable growth aspects than its peers.

Dividends

Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. Anworth Mortgage Asset Corporation pays out 95.2% 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, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. Anworth Mortgage Asset Corporation has increased its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Anworth Mortgage Asset Corporation and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Anworth Mortgage Asset Corporation $83.05 million N/A 9.64
Anworth Mortgage Asset Corporation Competitors $1.00 billion $531.02 million 29.23

Anworth Mortgage Asset Corporation’s peers have higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation 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.

Insider and Institutional Ownership

56.2% of Anworth Mortgage Asset Corporation shares are held by institutional investors. Comparatively, 64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 1.9% of Anworth Mortgage Asset Corporation shares are held by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Anworth Mortgage Asset Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anworth Mortgage Asset Corporation 44.13% 8.83% 0.96%
Anworth Mortgage Asset Corporation Competitors 36.41% 8.84% 3.25%

Summary

Anworth Mortgage Asset Corporation peers beat Anworth Mortgage Asset Corporation on 11 of the 14 factors compared.

About Anworth Mortgage Asset Corporation

Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.

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