Financial Analysis: New Residential Investment Corp. (NRZ) & Its Rivals
New Residential Investment Corp. (NYSE: NRZ) is one of 35 publicly-traded companies in the “Mortgage REITs” industry, but how does it weigh in compared to its competitors? We will compare New Residential Investment Corp. to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, earnings, dividends, profitability and valuation.
Valuation and Earnings
This table compares New Residential Investment Corp. and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|New Residential Investment Corp.||$1.08 billion||$504.45 million||5.67|
|New Residential Investment Corp. Competitors||$383.25 million||$201.70 million||5.96|
New Residential Investment Corp. has higher revenue and earnings than its competitors. New Residential Investment Corp. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings for New Residential Investment Corp. and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Residential Investment Corp.||0||2||5||0||2.71|
|New Residential Investment Corp. Competitors||116||844||839||33||2.43|
New Residential Investment Corp. currently has a consensus price target of $17.63, suggesting a potential upside of 0.66%. As a group, “Mortgage REITs” companies have a potential upside of 3.96%. Given New Residential Investment Corp.’s competitors higher probable upside, analysts clearly believe New Residential Investment Corp. has less favorable growth aspects than its competitors.
This table compares New Residential Investment Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Residential Investment Corp.||60.06%||19.38%||3.99%|
|New Residential Investment Corp. Competitors||48.54%||9.79%||2.53%|
Volatility & Risk
New Residential Investment Corp. has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, New Residential Investment Corp.’s competitors have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.
Insider and Institutional Ownership
48.1% of New Residential Investment Corp. shares are held by institutional investors. Comparatively, 57.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 4.0% of New Residential Investment Corp. shares are held by company insiders. Comparatively, 3.2% 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 stock will outperform the market over the long term.
New Residential Investment Corp. pays an annual dividend of $2.00 per share and has a dividend yield of 11.4%. New Residential Investment Corp. pays out 64.7% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.2% and pay out 77.1% of their earnings in the form of a dividend. New Residential Investment Corp. has raised its dividend for 3 consecutive years. New Residential Investment Corp. is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
New Residential Investment Corp. beats its competitors on 12 of the 15 factors compared.
New Residential Investment Corp. Company Profile
New Residential Investment Corp. is a real estate investment trust (REIT). The Company focuses on investing in, and managing, investments related to residential real estate. The Company’s segments include investments in excess mortgage servicing rights (Excess MSRs); investments in mortgage servicing rights (MSRs); investments in servicer advances; investments in real estate securities; investments in residential mortgage loans; investments in consumer loans, and corporate. Its portfolio includes mortgage servicing related assets, residential mortgage backed securities (RMBS), residential mortgage loans and other investments. The Company’s servicing related assets include its investments in Excess MSRs, MSRs and servicer advances. The Company invests in agency RMBS and non-agency RMBS. The Company’s other investments consist of consumer loans.
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