Analyzing Dynex Capital (DX) and The Competition
Dynex Capital (NYSE: DX) is one of 35 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its peers? We will compare Dynex Capital to similar companies based on the strength of its institutional ownership, profitability, dividends, analyst recommendations, valuation, earnings and risk.
Valuation and Earnings
This table compares Dynex Capital and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Dynex Capital||$105.39 million||N/A||4.55|
|Dynex Capital Competitors||N/A||N/A||6.68|
Dynex Capital 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.
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 Competitors||50.22%||9.76%||2.53%|
Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 10.3%. 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 10.4% and pay out 83.5% of their earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Dynex Capital and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynex Capital Competitors||116||844||839||33||2.43|
Dynex Capital presently has a consensus price target of $7.38, suggesting a potential upside of 5.36%. As a group, “Mortgage REITs” companies have a potential upside of 5.63%. Given Dynex Capital’s peers stronger consensus rating and higher probable upside, analysts plainly believe Dynex Capital has less favorable growth aspects than its peers.
Insider & Institutional Ownership
44.7% of Dynex Capital shares are owned by institutional investors. Comparatively, 57.0% of shares of all “Mortgage REITs” companies are owned by institutional investors. 7.1% of Dynex Capital shares are owned by insiders. Comparatively, 3.2% of shares of all “Mortgage REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Dynex Capital has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Dynex Capital’s peers have a beta of 0.68, suggesting that their average stock price is 32% less volatile than the S&P 500.
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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