Head to Head Survey: AGNC Investment (NASDAQ:AGNCZ) & NexPoint Real Estate Finance (NYSE:NREF)

AGNC Investment (NASDAQ:AGNCZ) and NexPoint Real Estate Finance (NYSE:NREF) are both real estate 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.

Institutional & Insider Ownership

67.8% of NexPoint Real Estate Finance shares are held by institutional investors. 55.7% of NexPoint Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for AGNC Investment and NexPoint Real Estate Finance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
NexPoint Real Estate Finance	1	3	0	0	1.75

NexPoint Real Estate Finance has a consensus target price of $14.50, suggesting a potential downside of 8.78%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher probable upside, analysts clearly believe NexPoint Real Estate Finance is more favorable than AGNC Investment.

Profitability

This table compares AGNC Investment and NexPoint Real Estate Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
NexPoint Real Estate Finance	117.74%	13.14%	0.93%

Earnings and Valuation

This table compares AGNC Investment and NexPoint Real Estate Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$1.61 billion	N/A	N/A	N/A	N/A
NexPoint Real Estate Finance	$89.95 million	3.33	$105.10 million	$2.62	6.07

NexPoint Real Estate Finance has lower revenue, but higher earnings than AGNC Investment.

Summary

NexPoint Real Estate Finance beats AGNC Investment on 7 of the 8 factors compared between the two stocks.

About NexPoint Real Estate Finance

NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.