Critical Contrast: AG Mortgage Investment Trust (MITT) versus Granite Point Mortgage Trust (GPMT)

AG Mortgage Investment Trust (NYSE: MITT) and Granite Point Mortgage Trust (NASDAQ:GPMT) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for AG Mortgage Investment Trust and Granite Point Mortgage Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AG Mortgage Investment Trust 0 3 0 0 2.00
Granite Point Mortgage Trust 0 2 2 0 2.50

AG Mortgage Investment Trust currently has a consensus price target of $18.17, suggesting a potential downside of 7.22%. Granite Point Mortgage Trust has a consensus price target of $20.00, suggesting a potential upside of 6.95%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than AG Mortgage Investment Trust.

Institutional & Insider Ownership

64.7% of AG Mortgage Investment Trust shares are owned by institutional investors. 1.6% of AG Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 9.7%. Granite Point Mortgage Trust does not pay a dividend. AG Mortgage Investment Trust pays out 58.8% of its earnings in the form of a dividend.

Profitability

This table compares AG Mortgage Investment Trust and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AG Mortgage Investment Trust 85.21% 11.97% 2.12%
Granite Point Mortgage Trust 54.39% 8.94% 3.09%

Earnings & Valuation

This table compares AG Mortgage Investment Trust and Granite Point Mortgage Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AG Mortgage Investment Trust $119.69 million 4.55 $89.88 million $3.23 6.06
Granite Point Mortgage Trust N/A N/A N/A N/A N/A

AG Mortgage Investment Trust has higher revenue and earnings than Granite Point Mortgage Trust.

Summary

AG Mortgage Investment Trust beats Granite Point Mortgage Trust on 6 of the 11 factors compared between the two stocks.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

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