Financial Review: Lument Finance Trust (NYSE:LFT) and AGNC Investment (NASDAQ:AGNCN)

Lument Finance Trust (NYSE:LFT) and AGNC Investment (NASDAQ:AGNCN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lument Finance Trust and AGNC Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lument Finance Trust	1	0	0	0	1.00
AGNC Investment	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lument Finance Trust	-2.59%	5.65%	0.86%
AGNC Investment	N/A	N/A	N/A

Dividends

Lument Finance Trust pays an annual dividend of $0.16 per share and has a dividend yield of 24.7%. AGNC Investment pays an annual dividend of $1.75 per share and has a dividend yield of 6.8%. Lument Finance Trust pays out -123.1% of its earnings in the form of a dividend. Lument Finance Trust has increased its dividend for 2 consecutive years. Lument Finance Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Lument Finance Trust and AGNC Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lument Finance Trust	$79.00 million	0.43	-$2.74 million	($0.13)	-4.98
AGNC Investment	$1.60 billion	N/A	N/A	N/A	N/A

AGNC Investment has higher revenue and earnings than Lument Finance Trust.

Institutional and Insider Ownership

19.5% of Lument Finance Trust shares are held by institutional investors. 3.3% of Lument Finance Trust 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.

Summary

Lument Finance Trust beats AGNC Investment on 8 of the 10 factors compared between the two stocks.

About Lument Finance Trust

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.