Ladder Capital (LADR) and AGNC Investment (AGNC) Head to Head Review
Ladder Capital (NYSE: LADR) and AGNC Investment (NASDAQ:AGNC) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Ladder Capital pays an annual dividend of $1.26 per share and has a dividend yield of 8.6%. AGNC Investment pays an annual dividend of $2.16 per share and has a dividend yield of 11.4%. Ladder Capital pays out 144.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AGNC Investment pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AGNC Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Ladder Capital and AGNC Investment’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ladder Capital||$399.68 million||4.04||$66.72 million||$0.87||16.76|
|AGNC Investment||$769.00 million||9.60||$771.00 million||$1.96||9.63|
AGNC Investment has higher revenue and earnings than Ladder Capital. AGNC Investment is trading at a lower price-to-earnings ratio than Ladder Capital, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Ladder Capital and AGNC Investment, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ladder Capital currently has a consensus target price of $16.25, suggesting a potential upside of 11.45%. AGNC Investment has a consensus target price of $19.75, suggesting a potential upside of 4.66%. Given Ladder Capital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ladder Capital is more favorable than AGNC Investment.
Institutional & Insider Ownership
46.6% of Ladder Capital shares are owned by institutional investors. Comparatively, 65.6% of AGNC Investment shares are owned by institutional investors. 12.5% of Ladder Capital shares are owned by insiders. Comparatively, 0.5% of AGNC Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Ladder Capital has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, AGNC Investment has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
This table compares Ladder Capital and AGNC Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AGNC Investment beats Ladder Capital on 9 of the 16 factors compared between the two stocks.
Ladder Capital Company Profile
Ladder Capital Corp is a commercial real estate finance company. The Company’s segments include loans, securities, real estate and corporate/other. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment consists of all of its activities related to commercial real estate securities, which include investments in commercial mortgage-backed securities (CMBS) and United States Agency Securities. The real estate segment includes net leased properties, office buildings, a warehouse and condominium units. The Corporate/other segment includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company invests primarily in loans, securities and other interests in the United States commercial real estate, with a focus on senior secured assets.
AGNC Investment Company Profile
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).
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