Anworth Mortgage Asset Corp Reit (NYSE:ANH) vs. Ellington Residential Mortgage REIT (NYSE:EARN) Head-To-Head Comparison

Anworth Mortgage Asset Corp Reit (NYSE:ANH) and Ellington Residential Mortgage REIT (NYSE:EARN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Volatility & Risk

Anworth Mortgage Asset Corp Reit has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Ellington Residential Mortgage REIT has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Anworth Mortgage Asset Corp Reit and Ellington Residential Mortgage REIT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anworth Mortgage Asset Corp Reit $122.32 million 2.70 -$6.49 million N/A N/A
Ellington Residential Mortgage REIT $54.55 million 2.46 -$11.30 million $1.34 7.94

Anworth Mortgage Asset Corp Reit has higher revenue and earnings than Ellington Residential Mortgage REIT.

Profitability

This table compares Anworth Mortgage Asset Corp Reit and Ellington Residential Mortgage REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anworth Mortgage Asset Corp Reit N/A 10.79% 1.01%
Ellington Residential Mortgage REIT -2.05% 8.89% 0.84%

Analyst Ratings

This is a summary of current ratings for Anworth Mortgage Asset Corp Reit and Ellington Residential Mortgage REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anworth Mortgage Asset Corp Reit 1 0 0 0 1.00
Ellington Residential Mortgage REIT 0 0 1 0 3.00

Anworth Mortgage Asset Corp Reit presently has a consensus price target of $4.00, indicating a potential upside of 19.76%. Ellington Residential Mortgage REIT has a consensus price target of $12.50, indicating a potential upside of 17.48%. Given Anworth Mortgage Asset Corp Reit’s higher possible upside, equities analysts clearly believe Anworth Mortgage Asset Corp Reit is more favorable than Ellington Residential Mortgage REIT.

Insider and Institutional Ownership

51.2% of Anworth Mortgage Asset Corp Reit shares are held by institutional investors. Comparatively, 59.7% of Ellington Residential Mortgage REIT shares are held by institutional investors. 1.9% of Anworth Mortgage Asset Corp Reit shares are held by company insiders. Comparatively, 2.4% of Ellington Residential Mortgage REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Anworth Mortgage Asset Corp Reit pays an annual dividend of $0.44 per share and has a dividend yield of 13.2%. Ellington Residential Mortgage REIT pays an annual dividend of $1.12 per share and has a dividend yield of 10.5%. Ellington Residential Mortgage REIT pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Anworth Mortgage Asset Corp Reit beats Ellington Residential Mortgage REIT on 9 of the 15 factors compared between the two stocks.

Anworth Mortgage Asset Corp Reit Company Profile

Anworth Mortgage Asset Corporation operates as a real estate investment trust (REIT) in the United States. It primarily invests in, finances, and manages a leveraged portfolio of residential mortgage-backed securities and loans that are guaranteed by government-sponsored enterprises, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The company also invests in non-agency mortgage backed securities, which are secured by first-lien residential mortgage loans; and other mortgage-related investments consisting of mortgage derivative securities, subordinated interests, and residential real estate properties. Anworth Mortgage Asset Corporation qualifies as a REIT for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Anworth Mortgage Asset Corporation was founded in 1997 and is based in Santa Monica, California.

Ellington Residential Mortgage REIT Company Profile

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Ellington Residential Mortgage REIT was founded in 2012 and is based in Old Greenwich, Connecticut.

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