AGNC Investment (NASDAQ:AGNCL) and Franklin BSP Realty Trust (NYSE:FBRT) Head to Head Analysis

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

Dividends

AGNC Investment pays an annual dividend of $1.94 per share and has a dividend yield of 7.7%. Franklin BSP Realty Trust pays an annual dividend of $0.80 per share and has a dividend yield of 9.3%. Franklin BSP Realty Trust pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

59.9% of Franklin BSP Realty Trust shares are held by institutional investors. 1.3% of Franklin BSP Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
Franklin BSP Realty Trust	20.49%	5.82%	1.17%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
Franklin BSP Realty Trust	1	1	3	0	2.40

Franklin BSP Realty Trust has a consensus price target of $11.50, indicating a potential upside of 33.72%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Franklin BSP Realty Trust is more favorable than AGNC Investment.

Valuation and Earnings

This table compares AGNC Investment and Franklin BSP Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A
Franklin BSP Realty Trust	$270.07 million	2.64	$82.27 million	$0.44	19.55

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

Summary

Franklin BSP Realty Trust beats AGNC Investment on 9 of the 11 factors compared between the two stocks.

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.

About Franklin BSP Realty Trust

Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.