Invesco Mortgage Capital (NASDAQ: NYMT) and NY Mtg Tr Inc/SH (NASDAQ:NYMT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This is a summary of current ratings for Invesco Mortgage Capital and NY Mtg Tr Inc/SH, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Mortgage Capital||0||3||0||0||2.00|
|NY Mtg Tr Inc/SH||0||4||1||0||2.20|
Invesco Mortgage Capital currently has a consensus price target of $16.67, indicating a potential upside of 0.89%. NY Mtg Tr Inc/SH has a consensus price target of $6.19, indicating a potential downside of 4.51%. Given Invesco Mortgage Capital’s higher probable upside, research analysts plainly believe Invesco Mortgage Capital is more favorable than NY Mtg Tr Inc/SH.
Valuation & Earnings
This table compares Invesco Mortgage Capital and NY Mtg Tr Inc/SH’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Invesco Mortgage Capital||$594.39 million||3.10||$348.60 million||N/A||N/A|
|NY Mtg Tr Inc/SH||$441.10 million||2.04||$91.98 million||$0.66||9.82|
Invesco Mortgage Capital has higher revenue and earnings than NY Mtg Tr Inc/SH.
Institutional & Insider Ownership
65.8% of Invesco Mortgage Capital shares are held by institutional investors. Comparatively, 44.9% of NY Mtg Tr Inc/SH shares are held by institutional investors. 0.3% of Invesco Mortgage Capital shares are held by insiders. Comparatively, 1.0% of NY Mtg Tr Inc/SH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Invesco Mortgage Capital pays an annual dividend of $1.68 per share and has a dividend yield of 10.2%. NY Mtg Tr Inc/SH pays an annual dividend of $0.80 per share and has a dividend yield of 12.3%. NY Mtg Tr Inc/SH pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Invesco Mortgage Capital and NY Mtg Tr Inc/SH’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%|
|NY Mtg Tr Inc/SH||24.78%||17.07%||1.03%|
Risk & Volatility
Invesco Mortgage Capital has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, NY Mtg Tr Inc/SH has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Invesco Mortgage Capital beats NY Mtg Tr Inc/SH on 8 of the 15 factors compared between the two stocks.
Invesco Mortgage Capital Company Profile
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.
NY Mtg Tr Inc/SH Company Profile
New York Mortgage Trust, Inc., a real estate investment trust (REIT), acquires, invests in, finances, and manages mortgage-related and residential housing-related, and financial assets in the United States. The company's investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets; non-agency residential mortgage-backed securities; multi-family commercial mortgage-backed securities; and preferred equities. It qualifies as a REIT for federal income tax purposes. The company generally would not be subject to federal income tax on that portion of its income if it distributes at least 90% of its taxable income to its stockholders. New York Mortgage Trust, Inc. was founded in 1989 and is headquartered in New York City, New York.
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