Head to Head Analysis: MFA Financial (MFA) & Its Rivals
MFA Financial (NYSE: MFA) is one of 37 publicly-traded companies in the “Mortgage REITs” industry, but how does it weigh in compared to its peers? We will compare MFA Financial to related companies based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk & Volatility
MFA Financial has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, MFA Financial’s peers have a beta of 0.71, meaning that their average share price is 29% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for MFA Financial and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MFA Financial Competitors||115||845||842||31||2.43|
MFA Financial currently has a consensus price target of $8.50, indicating a potential downside of 2.52%. As a group, “Mortgage REITs” companies have a potential upside of 2.02%. Given MFA Financial’s peers stronger consensus rating and higher possible upside, analysts plainly believe MFA Financial has less favorable growth aspects than its peers.
MFA Financial pays an annual dividend of $0.80 per share and has a dividend yield of 9.2%. MFA Financial pays out 102.6% 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, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.4% of their earnings in the form of a dividend. MFA Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Earnings and Valuation
This table compares MFA Financial and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|MFA Financial||$376.15 million||N/A||11.18|
|MFA Financial Competitors||$320.94 million||$123.24 million||1.53|
MFA Financial has higher revenue, but lower earnings than its peers. MFA Financial 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.
Insider and Institutional Ownership
80.1% of MFA Financial shares are held by institutional investors. Comparatively, 57.8% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.9% of MFA Financial 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.
This table compares MFA Financial and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MFA Financial Competitors||49.97%||10.41%||2.70%|
MFA Financial peers beat MFA Financial on 10 of the 14 factors compared.
MFA Financial Company Profile
MFA Financial, Inc. is engaged in the real estate finance business. The Company’s subsidiaries invest in residential mortgage assets, including Non-Agency mortgage-backed securities (MBS), Agency MBS, residential whole loans and credit risk transfer (CRT) securities. The Company’s Non-Agency MBS portfolio primarily consists of Legacy Non-Agency MBS and 3 Year Step-up securities. In addition to Non-Agency MBS investments, the Company invests in re-performing and non-performing residential whole loans through its interests in certain consolidated trusts. The mortgages collateralizing its Agency MBS portfolio are predominantly Hybrids, 15-year fixed-rate mortgages and adjustable-rate mortgages (ARMs).
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