AGNC Investment (NASDAQ:AGNC) and SOTHERLY HOTELS/SH SH (NASDAQ:SOHO) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
AGNC Investment pays an annual dividend of $2.16 per share and has a dividend yield of 12.2%. SOTHERLY HOTELS/SH SH pays an annual dividend of $0.50 per share and has a dividend yield of 7.4%. AGNC Investment pays out 87.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SOTHERLY HOTELS/SH SH pays out 50.0% of its earnings in the form of a dividend. SOTHERLY HOTELS/SH SH has raised its dividend for 4 consecutive years.
Institutional and Insider Ownership
59.0% of AGNC Investment shares are held by institutional investors. Comparatively, 30.4% of SOTHERLY HOTELS/SH SH shares are held by institutional investors. 0.4% of AGNC Investment shares are held by insiders. Comparatively, 14.7% of SOTHERLY HOTELS/SH SH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
AGNC Investment has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, SOTHERLY HOTELS/SH SH has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
This table compares AGNC Investment and SOTHERLY HOTELS/SH SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SOTHERLY HOTELS/SH SH||0.41%||0.78%||0.15%|
Valuation & Earnings
This table compares AGNC Investment and SOTHERLY HOTELS/SH SH’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||$769.00 million||11.02||$771.00 million||$2.46||7.21|
|SOTHERLY HOTELS/SH SH||$154.27 million||0.62||$440,000.00||$1.00||6.77|
AGNC Investment has higher revenue and earnings than SOTHERLY HOTELS/SH SH. SOTHERLY HOTELS/SH SH is trading at a lower price-to-earnings ratio than AGNC Investment, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for AGNC Investment and SOTHERLY HOTELS/SH SH, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SOTHERLY HOTELS/SH SH||0||1||0||0||2.00|
AGNC Investment currently has a consensus target price of $18.95, suggesting a potential upside of 6.88%. SOTHERLY HOTELS/SH SH has a consensus target price of $7.00, suggesting a potential upside of 3.40%. Given AGNC Investment’s stronger consensus rating and higher possible upside, equities analysts plainly believe AGNC Investment is more favorable than SOTHERLY HOTELS/SH SH.
AGNC Investment beats SOTHERLY HOTELS/SH SH on 13 of the 17 factors compared between the two stocks.
AGNC Investment Company Profile
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).
SOTHERLY HOTELS/SH SH Company Profile
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Currently, the Company's portfolio consists of investments in twelve hotel properties, comprising 3,156 rooms, and an interest in the Hyde Resort & Residences, a luxury condo hotel. The Company owns hotels that operate under the Hilton Worldwide, InterContinental Hotels Group and Marriott International, Inc. brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
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