New Residential Investment Corp. (NYSE: NRZ) is one of 35 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its rivals? We will compare New Residential Investment Corp. to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

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, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for New Residential Investment Corp. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Residential Investment Corp. 0 1 5 0 2.83
New Residential Investment Corp. Competitors 116 844 840 33 2.43

New Residential Investment Corp. presently has a consensus target price of $18.15, suggesting a potential upside of 3.71%. As a group, “Mortgage REITs” companies have a potential upside of 6.72%. Given New Residential Investment Corp.’s rivals higher probable upside, analysts plainly believe New Residential Investment Corp. has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares New Residential Investment Corp. and its rivals 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 5.66
New Residential Investment Corp. Competitors $383.25 million $201.70 million 0.68

New Residential Investment Corp. has higher revenue and earnings than its rivals. New Residential Investment Corp. 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

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 77.6% 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 rivals, given its higher yield and lower payout ratio.

Risk & Volatility

New Residential Investment Corp. has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, New Residential Investment Corp.’s rivals have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Profitability

This table compares New Residential Investment Corp. and its rivals’ 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 48.53% 9.82% 2.54%

Summary

New Residential Investment Corp. beats its rivals 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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