Comparing Anworth Mortgage Asset Corporation (ANH) and CorEnergy Infrastructure Trust (CORR)

CorEnergy Infrastructure Trust (NYSE: CORR) and Anworth Mortgage Asset Corporation (NYSE:ANH) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for CorEnergy Infrastructure Trust and Anworth Mortgage Asset Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CorEnergy Infrastructure Trust 1 2 1 0 2.00
Anworth Mortgage Asset Corporation 0 1 0 0 2.00

CorEnergy Infrastructure Trust presently has a consensus price target of $35.50, indicating a potential upside of 9.91%. Anworth Mortgage Asset Corporation has a consensus price target of $6.00, indicating a potential downside of 1.32%. Given CorEnergy Infrastructure Trust’s higher possible upside, research analysts clearly believe CorEnergy Infrastructure Trust is more favorable than Anworth Mortgage Asset Corporation.

Volatility and Risk

CorEnergy Infrastructure Trust has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Anworth Mortgage Asset Corporation has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Dividends

CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 9.3%. Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. CorEnergy Infrastructure Trust pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anworth Mortgage Asset Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CorEnergy Infrastructure Trust has increased its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

68.7% of CorEnergy Infrastructure Trust shares are owned by institutional investors. Comparatively, 58.3% of Anworth Mortgage Asset Corporation shares are owned by institutional investors. 1.0% of CorEnergy Infrastructure Trust shares are owned by insiders. Comparatively, 1.9% of Anworth Mortgage Asset Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares CorEnergy Infrastructure Trust and Anworth Mortgage Asset Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CorEnergy Infrastructure Trust $88.83 million 4.33 $71.15 million $2.41 13.40
Anworth Mortgage Asset Corporation $83.05 million 7.14 $61.46 million $0.63 9.65

CorEnergy Infrastructure Trust has higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation is trading at a lower price-to-earnings ratio than CorEnergy Infrastructure Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CorEnergy Infrastructure Trust and Anworth Mortgage Asset Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CorEnergy Infrastructure Trust 38.26% 9.04% 5.17%
Anworth Mortgage Asset Corporation 44.13% 8.83% 0.96%

Summary

CorEnergy Infrastructure Trust beats Anworth Mortgage Asset Corporation on 10 of the 16 factors compared between the two stocks.

CorEnergy Infrastructure Trust Company Profile

CorEnergy Infrastructure Trust, Inc. (CorEnergy) is focused on acquiring and financing midstream and downstream real estate assets within the United States energy infrastructure sector and concurrently entering into long-term triple-net participating leases with energy companies. The Company also provides other types of capital, including loans secured by energy infrastructure assets. The Company owns assets, such as pipelines, storage terminals, and transmission and distribution assets. It assets include Grand Isle Gathering System, Pinedale Liquids Gathering System (Pinedale LGS), Portland Terminal Facility, MoGas Pipeline System and Omega Pipeline.

Anworth Mortgage Asset Corporation Company Profile

Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.

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