Adamas Trust (NASDAQ:ADAM) and AGNC Investment (NASDAQ:AGNCM) Financial Analysis

Adamas Trust (NASDAQ:ADAM) and AGNC Investment (NASDAQ:AGNCM) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Dividends

Adamas Trust pays an annual dividend of $1.08 per share and has a dividend yield of 10.7%. AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 6.8%. Adamas Trust pays out 64.3% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Adamas Trust	29.82%	14.72%	1.04%
AGNC Investment	N/A	N/A	N/A

Insider and Institutional Ownership

54.9% of Adamas Trust shares are owned by institutional investors. 2.0% of Adamas Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Adamas Trust and AGNC Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adamas Trust	$601.95 million	1.51	$149.05 million	$1.68	6.01
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current recommendations for Adamas Trust and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adamas Trust	0	4	1	1	2.50
AGNC Investment	0	0	0	0	0.00

Adamas Trust currently has a consensus target price of $9.50, suggesting a potential downside of 5.89%. Given Adamas Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Adamas Trust is more favorable than AGNC Investment.

Summary

Adamas Trust beats AGNC Investment on 10 of the 12 factors compared between the two stocks.

About Adamas Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 incorporated in 2003 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.