ARR vs. RWT, DX, CIM, MFA, PMT, NYMT, TWO, IVR, ARI, and ACRE
Should you be buying ARMOUR Residential REIT stock or one of its competitors? The main competitors of ARMOUR Residential REIT include Redwood Trust (RWT), Dynex Capital (DX), Chimera Investment (CIM), MFA Financial (MFA), PennyMac Mortgage Investment Trust (PMT), New York Mortgage Trust (NYMT), Two Harbors Investment (TWO), Invesco Mortgage Capital (IVR), Apollo Commercial Real Estate Finance (ARI), and Ares Commercial Real Estate (ACRE). These companies are all part of the "mortgage reits" industry.
ARMOUR Residential REIT (NYSE:ARR) and Redwood Trust (NYSE:RWT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, media sentiment, valuation, institutional ownership, analyst recommendations, profitability, dividends, earnings and community ranking.
ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 15.0%. Redwood Trust pays an annual dividend of $0.64 per share and has a dividend yield of 9.7%. ARMOUR Residential REIT pays out -400.0% of its earnings in the form of a dividend. Redwood Trust pays out 914.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Redwood Trust has a net margin of 3.06% compared to ARMOUR Residential REIT's net margin of -3.83%. ARMOUR Residential REIT's return on equity of 15.68% beat Redwood Trust's return on equity.
54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 74.3% of Redwood Trust shares are owned by institutional investors. 0.4% of ARMOUR Residential REIT shares are owned by insiders. Comparatively, 2.5% of Redwood Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Redwood Trust has higher revenue and earnings than ARMOUR Residential REIT. ARMOUR Residential REIT is trading at a lower price-to-earnings ratio than Redwood Trust, indicating that it is currently the more affordable of the two stocks.
ARMOUR Residential REIT has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Redwood Trust has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.
ARMOUR Residential REIT presently has a consensus target price of $19.25, suggesting a potential upside of 0.23%. Redwood Trust has a consensus target price of $7.66, suggesting a potential upside of 15.57%. Given Redwood Trust's stronger consensus rating and higher possible upside, analysts plainly believe Redwood Trust is more favorable than ARMOUR Residential REIT.
In the previous week, Redwood Trust had 1 more articles in the media than ARMOUR Residential REIT. MarketBeat recorded 4 mentions for Redwood Trust and 3 mentions for ARMOUR Residential REIT. Redwood Trust's average media sentiment score of 1.45 beat ARMOUR Residential REIT's score of 1.21 indicating that Redwood Trust is being referred to more favorably in the news media.
Redwood Trust received 151 more outperform votes than ARMOUR Residential REIT when rated by MarketBeat users. Likewise, 65.46% of users gave Redwood Trust an outperform vote while only 50.00% of users gave ARMOUR Residential REIT an outperform vote.
Summary
Redwood Trust beats ARMOUR Residential REIT on 16 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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