MFA vs. CIM, ARR, PMT, RWT, TWO, DX, ARI, RC, NYMT, and IVR
Should you be buying MFA Financial stock or one of its competitors? The main competitors of MFA Financial include Chimera Investment (CIM), ARMOUR Residential REIT (ARR), PennyMac Mortgage Investment Trust (PMT), Redwood Trust (RWT), Two Harbors Investment (TWO), Dynex Capital (DX), Apollo Commercial Real Estate Finance (ARI), Ready Capital (RC), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Chimera Investment (NYSE:CIM) and MFA Financial (NYSE:MFA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, community ranking, dividends, analyst recommendations, profitability and media sentiment.
48.4% of Chimera Investment shares are owned by institutional investors. Comparatively, 65.3% of MFA Financial shares are owned by institutional investors. 0.9% of Chimera Investment shares are owned by insiders. Comparatively, 0.7% of MFA Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Chimera Investment presently has a consensus target price of $5.50, indicating a potential upside of 20.75%. MFA Financial has a consensus target price of $12.00, indicating a potential upside of 9.09%. Given MFA Financial's higher probable upside, analysts clearly believe Chimera Investment is more favorable than MFA Financial.
Chimera Investment received 51 more outperform votes than MFA Financial when rated by MarketBeat users. Likewise, 58.06% of users gave Chimera Investment an outperform vote while only 57.98% of users gave MFA Financial an outperform vote.
Chimera Investment has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, MFA Financial has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.
Chimera Investment pays an annual dividend of $0.44 per share and has a dividend yield of 9.7%. MFA Financial pays an annual dividend of $1.40 per share and has a dividend yield of 12.7%. Chimera Investment pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MFA Financial pays out -1,749.8% of its earnings in the form of a dividend. MFA Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Chimera Investment has higher earnings, but lower revenue than MFA Financial. MFA Financial is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
In the previous week, Chimera Investment had 14 more articles in the media than MFA Financial. MarketBeat recorded 15 mentions for Chimera Investment and 1 mentions for MFA Financial. Chimera Investment's average media sentiment score of 1.02 beat MFA Financial's score of 0.42 indicating that MFA Financial is being referred to more favorably in the news media.
Chimera Investment has a net margin of 25.73% compared to Chimera Investment's net margin of 4.70%. Chimera Investment's return on equity of 9.66% beat MFA Financial's return on equity.
Summary
Chimera Investment and MFA Financial tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding MFA 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.
MFA Financial Competitors List
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