AG Mortgage Investment Trust (NYSE: MITT) and Five Oaks Investment (NYSE:OAKS) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares AG Mortgage Investment Trust and Five Oaks Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AG Mortgage Investment Trust 74.99% 11.21% 1.93%
Five Oaks Investment 7.08% 10.57% 0.47%

Valuation and Earnings

This table compares AG Mortgage Investment Trust and Five Oaks Investment’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AG Mortgage Investment Trust $123.01 million 4.46 $63.68 million $2.86 6.80
Five Oaks Investment $77.03 million 1.21 -$7.98 million $0.40 10.53

AG Mortgage Investment Trust has higher revenue and earnings than Five Oaks Investment. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than Five Oaks Investment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

65.8% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 33.2% of Five Oaks Investment shares are owned by institutional investors. 1.6% of AG Mortgage Investment Trust shares are owned by insiders. Comparatively, 0.9% of Five Oaks Investment shares are owned 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.

Risk and Volatility

AG Mortgage Investment Trust has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Five Oaks Investment has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for AG Mortgage Investment Trust and Five Oaks Investment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AG Mortgage Investment Trust 0 3 0 0 2.00
Five Oaks Investment 0 2 0 0 2.00

AG Mortgage Investment Trust presently has a consensus target price of $18.17, suggesting a potential downside of 6.65%. Given AG Mortgage Investment Trust’s higher probable upside, analysts clearly believe AG Mortgage Investment Trust is more favorable than Five Oaks Investment.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 9.8%. Five Oaks Investment pays an annual dividend of $0.60 per share and has a dividend yield of 14.3%. AG Mortgage Investment Trust pays out 66.4% of its earnings in the form of a dividend. Five Oaks Investment pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

AG Mortgage Investment Trust beats Five Oaks Investment on 12 of the 14 factors compared between the two stocks.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.

Five Oaks Investment Company Profile

Five Oaks Investment Corp. is a real estate investment trust. The Company is focused on investing on a leveraged basis in mortgage and other real estate-related assets, particularly residential mortgage loans and mortgage-backed securities (MBS). The Company invests in various assets, such as Agency residential MBS (RMBS); securitizations backed by multi-family mortgage loans, or Multi-Family MBS; residential mortgage loans and other mortgage-related investments, including mortgage servicing rights (MSRs), and Non-Agency RMBS. The Company finances its investments in Agency RMBS, Multi-Family MBS, residential mortgage loans and Non-Agency RMBS primarily through short-term borrowings structured as repurchase agreements. The Company is externally managed and advised by Oak Circle Capital Partners LLC.

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