Granite Point Mortgage Trust (NASDAQ: GPMT) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Earnings and Valuation
This table compares Granite Point Mortgage Trust and AG Mortgage Investment Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Granite Point Mortgage Trust||N/A||N/A||N/A||N/A||N/A|
|AG Mortgage Investment Trust||$119.69 million||4.50||$89.88 million||$3.23||5.99|
AG Mortgage Investment Trust has higher revenue and earnings than Granite Point Mortgage Trust.
This is a summary of recent ratings and price targets for Granite Point Mortgage Trust and AG Mortgage Investment Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Granite Point Mortgage Trust||0||2||2||0||2.50|
|AG Mortgage Investment Trust||0||3||0||0||2.00|
Granite Point Mortgage Trust currently has a consensus target price of $20.00, indicating a potential upside of 5.43%. AG Mortgage Investment Trust has a consensus target price of $18.17, indicating a potential downside of 6.16%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Granite Point Mortgage Trust is more favorable than AG Mortgage Investment Trust.
AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 9.8%. Granite Point Mortgage Trust does not pay a dividend. AG Mortgage Investment Trust pays out 58.8% of its earnings in the form of a dividend.
This table compares Granite Point Mortgage Trust and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Granite Point Mortgage Trust||54.39%||8.94%||3.09%|
|AG Mortgage Investment Trust||85.21%||11.97%||2.12%|
Institutional and Insider Ownership
64.7% of AG Mortgage Investment Trust shares are held by institutional investors. 1.6% of AG Mortgage Investment Trust shares are held by company 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.
AG Mortgage Investment Trust beats Granite Point Mortgage Trust on 6 of the 11 factors compared between the two stocks.
About Granite Point Mortgage Trust
Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.
About AG Mortgage Investment Trust
AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.
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