Contrasting AGNC Investment (NASDAQ:AGNCZ) & PennyMac Mortgage Investment Trust (NYSE:PMT)

AGNC Investment (NASDAQ:AGNCZ) and PennyMac Mortgage Investment Trust (NYSE:PMT) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares AGNC Investment and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
PennyMac Mortgage Investment Trust	41.38%	10.71%	0.72%

Earnings and Valuation

This table compares AGNC Investment and PennyMac Mortgage Investment Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$1.61 billion	N/A	N/A	N/A	N/A
PennyMac Mortgage Investment Trust	$307.46 million	3.06	$127.87 million	$1.15	9.39

PennyMac Mortgage Investment Trust has lower revenue, but higher earnings than AGNC Investment.

Institutional & Insider Ownership

67.4% of PennyMac Mortgage Investment Trust shares are held by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are held 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.

Analyst Ratings

This is a summary of current ratings and price targets for AGNC Investment and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
PennyMac Mortgage Investment Trust	2	4	2	0	2.00

PennyMac Mortgage Investment Trust has a consensus target price of $12.80, suggesting a potential upside of 18.57%. Given PennyMac Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe PennyMac Mortgage Investment Trust is more favorable than AGNC Investment.

Summary

PennyMac Mortgage Investment Trust beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.