Granite Point Mortgage Trust (NYSE:GPMT) & AGNC Investment (NASDAQ:AGNCP) Critical Analysis

AGNC Investment (NASDAQ:AGNCP) and Granite Point Mortgage Trust (NYSE:GPMT) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

AGNC Investment pays an annual dividend of $1.53 per share and has a dividend yield of 6.5%. Granite Point Mortgage Trust pays an annual dividend of $0.60 per share and has a dividend yield of 13.9%. Granite Point Mortgage Trust pays out -40.0% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares AGNC Investment and Granite Point Mortgage Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$251.00 million	N/A	N/A	N/A	N/A
Granite Point Mortgage Trust	$263.73 million	0.83	-$63.20 million	($1.50)	-2.88

AGNC Investment has higher earnings, but lower revenue than Granite Point Mortgage Trust.

Profitability

This table compares AGNC Investment and Granite Point Mortgage 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
Granite Point Mortgage Trust	-23.49%	4.10%	1.16%

Insider and Institutional Ownership

51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. 1.9% of Granite Point Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for AGNC Investment and Granite Point Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	N/A
Granite Point Mortgage Trust	1	1	2	0	2.25

Granite Point Mortgage Trust has a consensus target price of $6.56, suggesting a potential upside of 51.91%. Given Granite Point Mortgage Trust’s higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than AGNC Investment.

Summary

Granite Point Mortgage Trust beats AGNC Investment on 9 of the 10 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 Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. 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 founded in 2015 and is headquartered in New York, New York.