Head to Head Review: MFA Financial (MFA) vs. Its Competitors
MFA Financial (NYSE: MFA) is one of 35 public companies in the “Mortgage REITs” industry, but how does it weigh in compared to its competitors? We will compare MFA Financial to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Valuation and Earnings
This table compares MFA Financial and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|MFA Financial||$566.49 million||$312.66 million||10.95|
|MFA Financial Competitors||$383.25 million||$201.70 million||-0.87|
MFA Financial has higher revenue and earnings than its competitors. MFA Financial is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
MFA Financial pays an annual dividend of $0.80 per share and has a dividend yield of 10.0%. MFA Financial pays out 109.6% 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 10.3% and pay out 77.1% of their earnings in the form of a dividend. MFA Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Volatility & Risk
MFA Financial has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, MFA Financial’s competitors have a beta of 0.69, meaning that their average share price is 31% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for MFA Financial and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MFA Financial Competitors||116||844||839||33||2.43|
MFA Financial presently has a consensus price target of $8.50, suggesting a potential upside of 6.38%. As a group, “Mortgage REITs” companies have a potential upside of 5.24%. Given MFA Financial’s higher possible upside, equities analysts plainly believe MFA Financial is more favorable than its competitors.
Institutional & Insider Ownership
80.2% of MFA Financial shares are held by institutional investors. Comparatively, 57.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.9% of MFA Financial shares are held by insiders. Comparatively, 3.2% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares MFA Financial and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MFA Financial Competitors||48.54%||9.79%||2.53%|
MFA Financial competitors beat MFA Financial on 9 of the 15 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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