Head-To-Head Contrast: AG Mortgage Investment Trust (NYSE:MITT) versus Invesco Mortgage Capital (NYSE:IVR)

Invesco Mortgage Capital (NYSE:IVR) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

40.5% of Invesco Mortgage Capital shares are owned by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. 0.2% of Invesco Mortgage Capital shares are owned by company insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Invesco Mortgage Capital has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Dividends

Invesco Mortgage Capital pays an annual dividend of $1.36 per share and has a dividend yield of 17.9%. AG Mortgage Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 10.9%. Invesco Mortgage Capital pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust pays out 90.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Invesco Mortgage Capital and AG Mortgage Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Mortgage Capital	1	3	0	0	1.75
AG Mortgage Investment Trust	0	3	4	0	2.57

Invesco Mortgage Capital presently has a consensus target price of $7.50, suggesting a potential downside of 1.12%. AG Mortgage Investment Trust has a consensus target price of $8.60, suggesting a potential upside of 11.23%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe AG Mortgage Investment Trust is more favorable than Invesco Mortgage Capital.

Earnings and Valuation

This table compares Invesco Mortgage Capital and AG Mortgage Investment Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco Mortgage Capital	$72.30 million	7.44	$59.88 million	$0.51	14.87
AG Mortgage Investment Trust	$74.61 million	3.29	$55.74 million	$0.93	8.31

Invesco Mortgage Capital has higher earnings, but lower revenue than AG Mortgage Investment Trust. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than Invesco Mortgage Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Invesco Mortgage Capital and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco Mortgage Capital	13.77%	30.04%	2.91%
AG Mortgage Investment Trust	11.03%	13.88%	0.59%

Summary

Invesco Mortgage Capital beats AG Mortgage Investment Trust on 9 of the 17 factors compared between the two stocks.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that invests, finances, and manages mortgage-backed securities and other mortgage-related assets in the United States. It invests in residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) that are guaranteed by a U.S. government agency or federally chartered corporation; RMBS and CMBS that are not issued or guaranteed by the United States government agency or federally chartered corporation; the United States treasury securities; real estate-related financing arrangements; to-be-announced securities forward contracts to purchase RMBS; and commercial mortgage loans. It has elected to be taxed as a REIT and would be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.