Critical Contrast: AGNC Investment (NASDAQ:AGNCZ) versus Dynex Capital (NYSE:DX)

AGNC Investment (NASDAQ:AGNCZ) and Dynex Capital (NYSE:DX) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

38.3% of Dynex Capital shares are owned by institutional investors. 0.8% of Dynex Capital shares are owned 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.

Profitability

This table compares AGNC Investment and Dynex Capital’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
Dynex Capital	34.75%	7.86%	0.97%

Analyst Recommendations

This is a breakdown of current recommendations for AGNC Investment and Dynex Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
Dynex Capital	0	2	2	0	2.50

Dynex Capital has a consensus target price of $14.69, indicating a potential upside of 12.94%. Given Dynex Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Dynex Capital is more favorable than AGNC Investment.

Earnings and Valuation

This table compares AGNC Investment and Dynex Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$1.60 billion	N/A	N/A	N/A	N/A
Dynex Capital	$533.52 million	5.24	$319.07 million	$1.69	7.70

Dynex Capital has lower revenue, but higher earnings than AGNC Investment.

Summary

Dynex Capital beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.