MTGE Investment (MTGE) vs. Granite Point Mortgage Trust (GPMT) Head-To-Head Survey

MTGE Investment (NASDAQ: MTGE) and Granite Point Mortgage Trust (NYSE:GPMT) are both small-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

This table compares MTGE Investment and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTGE Investment 177.04% 10.53% 1.67%
Granite Point Mortgage Trust N/A N/A N/A

Institutional and Insider Ownership

73.7% of MTGE Investment shares are owned by institutional investors. Comparatively, 25.9% of Granite Point Mortgage Trust shares are owned by institutional investors. 1.1% of MTGE Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

MTGE Investment pays an annual dividend of $2.00 per share and has a dividend yield of 11.8%. Granite Point Mortgage Trust pays an annual dividend of $0.70 per share and has a dividend yield of 4.2%. MTGE Investment pays out 58.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares MTGE Investment and Granite Point Mortgage Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTGE Investment $91.12 million 8.54 $161.33 million $3.42 4.97
Granite Point Mortgage Trust N/A N/A N/A N/A N/A

MTGE Investment has higher revenue and earnings than Granite Point Mortgage Trust.

Analyst Ratings

This is a summary of current recommendations for MTGE Investment and Granite Point Mortgage Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTGE Investment 0 1 3 0 2.75
Granite Point Mortgage Trust 0 1 4 0 2.80

MTGE Investment presently has a consensus target price of $20.50, suggesting a potential upside of 20.59%. Granite Point Mortgage Trust has a consensus target price of $19.50, suggesting a potential upside of 16.49%. Given MTGE Investment’s higher possible upside, analysts plainly believe MTGE Investment is more favorable than Granite Point Mortgage Trust.

Summary

MTGE Investment beats Granite Point Mortgage Trust on 8 of the 11 factors compared between the two stocks.

MTGE Investment Company Profile

MTGE Investment Corp., formerly American Capital Mortgage Investment Corp., is a real estate investment trust. The Company invests in, finances and manages a leveraged portfolio of real estate-related investments, which include agency residential mortgage-backed securities (RMBS), non-agency securities, other mortgage-related investments and other real estate investments. Agency RMBS includes residential mortgage pass-through certificates and collateralized mortgage obligations (CMOs) structured from residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a government-sponsored enterprise (GSE), or by a United States Government agency, such as Government National Mortgage Association (Ginnie Mae). Non-agency securities include securities backed by residential mortgages that are not guaranteed by a GSE or the United States Government agency, and credit risk transfer securities (CRT). The Company’s manager is MTGE Management, LLC.

Granite Point Mortgage Trust Company Profile

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

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