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 rivals? We will compare MFA Financial to similar companies based on the strength of its risk, profitability, institutional ownership, valuation, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

80.2% of MFA Financial shares are held by institutional investors. Comparatively, 57.6% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.9% of MFA Financial 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 MFA Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MFA Financial 61.94% 10.12% 2.58%
MFA Financial Competitors 49.55% 10.37% 2.69%

Analyst Ratings

This is a breakdown of recent ratings and target prices for MFA Financial and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MFA Financial 0 3 2 0 2.40
MFA Financial Competitors 115 846 844 32 2.43

MFA Financial currently has a consensus target price of $8.50, suggesting a potential downside of 1.62%. As a group, “Mortgage REITs” companies have a potential upside of 3.38%. Given MFA Financial’s rivals stronger consensus rating and higher probable upside, analysts clearly believe MFA Financial has less favorable growth aspects than its rivals.

Risk & Volatility

MFA Financial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, MFA Financial’s rivals have a beta of 0.71, suggesting that their average stock price is 29% less volatile than the S&P 500.

Valuation & Earnings

This table compares MFA Financial and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MFA Financial $376.15 million N/A 11.08
MFA Financial Competitors $320.94 million $123.24 million 1.57

MFA Financial has higher revenue, but lower earnings than its rivals. MFA Financial is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

MFA Financial pays an annual dividend of $0.80 per share and has a dividend yield of 9.3%. 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 10.1% and pay out 80.4% of their earnings in the form of a dividend. MFA Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

MFA Financial rivals beat MFA Financial on 10 of the 14 factors compared.

About MFA Financial

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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