Invesco Mortgage Capital (NYSE: DEI) and Douglas Emmett (NYSE:DEI) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
This is a breakdown of recent ratings and recommmendations for Invesco Mortgage Capital and Douglas Emmett, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Mortgage Capital||0||3||0||0||2.00|
Invesco Mortgage Capital currently has a consensus target price of $16.67, suggesting a potential upside of 2.00%. Douglas Emmett has a consensus target price of $41.44, suggesting a potential upside of 6.82%. Given Douglas Emmett’s stronger consensus rating and higher probable upside, analysts plainly believe Douglas Emmett is more favorable than Invesco Mortgage Capital.
Volatility & Risk
Invesco Mortgage Capital has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
This table compares Invesco Mortgage Capital and Douglas Emmett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Invesco Mortgage Capital||52.70%||10.89%||1.19%|
Earnings and Valuation
This table compares Invesco Mortgage Capital and Douglas Emmett’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Invesco Mortgage Capital||$594.39 million||3.07||$348.60 million||N/A||N/A|
|Douglas Emmett||$812.05 million||8.12||$94.44 million||$1.90||20.42|
Invesco Mortgage Capital has higher earnings, but lower revenue than Douglas Emmett.
Invesco Mortgage Capital pays an annual dividend of $1.68 per share and has a dividend yield of 10.3%. Douglas Emmett pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Douglas Emmett pays out 52.6% of its earnings in the form of a dividend. Douglas Emmett has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
67.2% of Invesco Mortgage Capital shares are held by institutional investors. Comparatively, 96.9% of Douglas Emmett shares are held by institutional investors. 0.3% of Invesco Mortgage Capital shares are held by company insiders. Comparatively, 16.2% of Douglas Emmett shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Douglas Emmett beats Invesco Mortgage Capital on 10 of the 15 factors compared between the two stocks.
About Invesco Mortgage Capital
Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities (RMBS) that are guaranteed by the U.S. government agency or a federally chartered corporation; RMBS that are not issued or guaranteed by the U.S. government agency; commercial mortgage-backed securities; residential and commercial mortgage loans; and other real estate-related financing arrangements. The company has elected to be taxed as a REIT. As a result, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Invesco Mortgage Capital Inc. was founded in 2008 and is headquartered in Atlanta, Georgia.
About Douglas Emmett
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information about Douglas Emmett, please visit our website at www.douglasemmett.com.
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