IVR vs. ACRE, NYMT, MITT, DX, ARR, CIM, MFA, PMT, TWO, and ARI
Should you be buying Invesco Mortgage Capital stock or one of its competitors? The main competitors of Invesco Mortgage Capital include Ares Commercial Real Estate (ACRE), New York Mortgage Trust (NYMT), AG Mortgage Investment Trust (MITT), Dynex Capital (DX), ARMOUR Residential REIT (ARR), Chimera Investment (CIM), MFA Financial (MFA), PennyMac Mortgage Investment Trust (PMT), Two Harbors Investment (TWO), and Apollo Commercial Real Estate Finance (ARI). These companies are all part of the "mortgage reits" industry.
Invesco Mortgage Capital (NYSE:IVR) and Ares Commercial Real Estate (NYSE:ACRE) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, dividends, earnings, media sentiment, analyst recommendations, institutional ownership, profitability, valuation and risk.
Invesco Mortgage Capital has higher revenue and earnings than Ares Commercial Real Estate. Invesco Mortgage Capital is trading at a lower price-to-earnings ratio than Ares Commercial Real Estate, indicating that it is currently the more affordable of the two stocks.
Invesco Mortgage Capital received 103 more outperform votes than Ares Commercial Real Estate when rated by MarketBeat users. However, 60.11% of users gave Ares Commercial Real Estate an outperform vote while only 55.88% of users gave Invesco Mortgage Capital an outperform vote.
Invesco Mortgage Capital currently has a consensus target price of $9.25, suggesting a potential upside of 1.54%. Ares Commercial Real Estate has a consensus target price of $8.50, suggesting a potential upside of 22.83%. Given Ares Commercial Real Estate's stronger consensus rating and higher possible upside, analysts plainly believe Ares Commercial Real Estate is more favorable than Invesco Mortgage Capital.
In the previous week, Ares Commercial Real Estate had 3 more articles in the media than Invesco Mortgage Capital. MarketBeat recorded 9 mentions for Ares Commercial Real Estate and 6 mentions for Invesco Mortgage Capital. Invesco Mortgage Capital's average media sentiment score of 0.54 beat Ares Commercial Real Estate's score of 0.09 indicating that Invesco Mortgage Capital is being referred to more favorably in the media.
Invesco Mortgage Capital has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Ares Commercial Real Estate has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Invesco Mortgage Capital has a net margin of -5.71% compared to Ares Commercial Real Estate's net margin of -43.30%. Invesco Mortgage Capital's return on equity of 64.48% beat Ares Commercial Real Estate's return on equity.
Invesco Mortgage Capital pays an annual dividend of $1.60 per share and has a dividend yield of 17.6%. Ares Commercial Real Estate pays an annual dividend of $1.00 per share and has a dividend yield of 14.5%. Invesco Mortgage Capital pays out -200.0% of its earnings in the form of a dividend. Ares Commercial Real Estate pays out -138.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Invesco Mortgage Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
40.5% of Invesco Mortgage Capital shares are owned by institutional investors. Comparatively, 41.3% of Ares Commercial Real Estate shares are owned by institutional investors. 0.2% of Invesco Mortgage Capital shares are owned by insiders. Comparatively, 2.8% of Ares Commercial Real Estate shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Invesco Mortgage Capital beats Ares Commercial Real Estate on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding IVR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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