AGNC Investment (NASDAQ:AGNCM – Free Report) and Apollo Commercial Real Estate Finance (NYSE:ARI – Free Report) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Earnings & Valuations
This table compares AGNC Investment and Apollo Commercial Real Estate Finance’s revenue, earnings per share and valuation.
| GrossRevenues | Price/Sales Ratio | NetIncome | Earnings Per Share | Price/Earnings Ratio | |
| AGNC Investments | -$615.00 million | N/A | N/A | N/A | N/A |
| Apollo Commercial Real Estate Finance | $303.64 million | 5.13 | $265.23 million | $1.83 | 6.02 |
Apollo Commercial Real Estate Finance has higher revenue and earnings than AGNC Investment.
Insider and Institutional Ownership
55.7% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. 0.6% of Apollo Commercial Real Estate Finance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares AGNC Investment and Apollo Commercial Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AGNC Investments | N/A | N/A | N/A |
| Apollo Commercial Real Estate Finance | 90.97% | 8.68% | 2.12% |
Dividends
AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 7.6%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 12.7%. Apollo Commercial Real Estate Finance pays out 76.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payments in the future.
Analyst Ratings
This is a breakdown of current ratings and target prices for AGNC Investment and Apollo Commercial Real Estate Finance, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AGNC Investments | 0 | 0 | 0 | 0 | N/A |
| Apollo Commercial Real Estate Finance | 1 | 4 | 0 | 0 | 1.80 |
Apollo Commercial Real Estate Finance has a consensus target price of $10.80, indicating a potential downside of 2.00%. Given Apollo Commercial Real Estate Finance’s higher probable upside, analysts clearly believe Apollo Commercial Real Estate Finance is more favorable than AGNC Investment.
Summary
Apollo Commercial Real Estate Finance beats AGNC Investment on 8 of the 9 factors compared between the two stocks.
About AGNC Investment
(Free Report)
AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has been elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
About Apollo Commercial Real Estate Finance
(Free Report)
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was founded in 2009 and is based in New York, New York.
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