PMT vs. TWO, MFA, CIM, ARR, RC, ARI, RWT, DX, NYMT, and ACRE
Should you be buying PennyMac Mortgage Investment Trust stock or one of its competitors? The main competitors of PennyMac Mortgage Investment Trust include Two Harbors Investment (TWO), MFA Financial (MFA), Chimera Investment (CIM), ARMOUR Residential REIT (ARR), Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Redwood Trust (RWT), Dynex Capital (DX), New York Mortgage Trust (NYMT), and Ares Commercial Real Estate (ACRE). These companies are all part of the "mortgage reits" industry.
PennyMac Mortgage Investment Trust (NYSE:PMT) and Two Harbors Investment (NYSE:TWO) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their community ranking, risk, institutional ownership, dividends, analyst recommendations, valuation, media sentiment, profitability and earnings.
PennyMac Mortgage Investment Trust has a net margin of 45.19% compared to Two Harbors Investment's net margin of -22.14%. PennyMac Mortgage Investment Trust's return on equity of 13.25% beat Two Harbors Investment's return on equity.
PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 11.5%. Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 14.4%. PennyMac Mortgage Investment Trust pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Two Harbors Investment pays out -90.0% of its earnings in the form of a dividend. Two Harbors Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
PennyMac Mortgage Investment Trust has higher earnings, but lower revenue than Two Harbors Investment. Two Harbors Investment is trading at a lower price-to-earnings ratio than PennyMac Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Two Harbors Investment received 106 more outperform votes than PennyMac Mortgage Investment Trust when rated by MarketBeat users. Likewise, 67.99% of users gave Two Harbors Investment an outperform vote while only 63.35% of users gave PennyMac Mortgage Investment Trust an outperform vote.
PennyMac Mortgage Investment Trust has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Two Harbors Investment has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.
In the previous week, PennyMac Mortgage Investment Trust had 6 more articles in the media than Two Harbors Investment. MarketBeat recorded 13 mentions for PennyMac Mortgage Investment Trust and 7 mentions for Two Harbors Investment. PennyMac Mortgage Investment Trust's average media sentiment score of 0.94 beat Two Harbors Investment's score of 0.70 indicating that PennyMac Mortgage Investment Trust is being referred to more favorably in the media.
67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 64.2% of Two Harbors Investment shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Comparatively, 0.6% of Two Harbors Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
PennyMac Mortgage Investment Trust currently has a consensus target price of $14.75, indicating a potential upside of 6.12%. Two Harbors Investment has a consensus target price of $14.50, indicating a potential upside of 15.63%. Given Two Harbors Investment's higher probable upside, analysts plainly believe Two Harbors Investment is more favorable than PennyMac Mortgage Investment Trust.
Summary
PennyMac Mortgage Investment Trust beats Two Harbors Investment on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PMT 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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