Reviewing AGNC Investment (NASDAQ:AGNCZ) & Arbor Realty Trust (NYSE:ABR)

Arbor Realty Trust (NYSE:ABR) and AGNC Investment (NASDAQ:AGNCZ) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and price targets for Arbor Realty Trust and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arbor Realty Trust	4	1	1	0	1.50
AGNC Investment	0	0	0	0	0.00

Arbor Realty Trust presently has a consensus target price of $6.00, indicating a potential upside of 16.39%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe Arbor Realty Trust is more favorable than AGNC Investment.

Insider and Institutional Ownership

57.3% of Arbor Realty Trust shares are owned by institutional investors. 4.2% of Arbor Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Arbor Realty Trust and AGNC Investment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arbor Realty Trust	$940.01 million	1.02	$148.80 million	$0.07	73.64
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

Arbor Realty Trust has higher earnings, but lower revenue than AGNC Investment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arbor Realty Trust	6.24%	7.38%	1.22%
AGNC Investment	N/A	N/A	N/A

Summary

Arbor Realty Trust beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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 stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.