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

Institutional & Insider Ownership

44.4% of Dynex Capital shares are held by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are held by institutional investors. 7.1% of Dynex Capital shares are held by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Dynex Capital 93.54% 11.04% 1.25%
Dynex Capital Competitors 48.45% 10.68% 2.77%

Dividends

Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 10.0%. Dynex Capital pays out 46.8% 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 80.5% of their earnings in the form of a dividend.

Risk and Volatility

Dynex Capital has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Dynex Capital’s peers have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Dynex Capital $105.39 million N/A 4.68
Dynex Capital Competitors $626.30 million $243.53 million 1.51

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

Analyst Ratings

This is a breakdown of current ratings for Dynex Capital and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynex Capital 0 2 1 0 2.33
Dynex Capital Competitors 112 839 842 31 2.43

Dynex Capital presently has a consensus target price of $7.38, suggesting a potential upside of 2.43%. As a group, “Mortgage REITs” companies have a potential upside of 2.73%. Given Dynex Capital’s peers stronger consensus rating and higher possible upside, analysts clearly believe Dynex Capital has less favorable growth aspects than its peers.

Summary

Dynex Capital peers beat Dynex Capital on 8 of the 14 factors compared.

About Dynex Capital

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage securities on a leveraged basis. The Company’s objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. It invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consists of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac.

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