Comparing Dynex Capital (NYSE:DX) and Bimini Capital Management (OTCMKTS:BMNM)

Dynex Capital (NYSE:DX) and Bimini Capital Management (OTCMKTS:BMNM) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares Dynex Capital and Bimini Capital Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$319.53 million	6.27	$113.90 million	$1.48	9.21
Bimini Capital Management	$11.90 million	1.69	-$1.31 million	$0.09	22.22

Dynex Capital has higher revenue and earnings than Bimini Capital Management. Dynex Capital is trading at a lower price-to-earnings ratio than Bimini Capital Management, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dynex Capital has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Bimini Capital Management has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500.

Profitability

This table compares Dynex Capital and Bimini Capital Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynex Capital	41.53%	6.65%	0.89%
Bimini Capital Management	5.98%	11.89%	0.63%

Insider & Institutional Ownership

38.3% of Dynex Capital shares are held by institutional investors. 1.0% of Dynex Capital shares are held by insiders. Comparatively, 45.4% of Bimini Capital Management shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Dynex Capital and Bimini Capital Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynex Capital	0	3	2	0	2.40
Bimini Capital Management	0	0	0	0	0.00

Dynex Capital presently has a consensus target price of $13.42, indicating a potential downside of 1.62%. Given Dynex Capital’s stronger consensus rating and higher probable upside, equities analysts clearly believe Dynex Capital is more favorable than Bimini Capital Management.

Summary

Dynex Capital beats Bimini Capital Management on 11 of the 14 factors compared between the two stocks.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.

About Bimini Capital Management

Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.