Head-To-Head Analysis: PennyMac Mortgage Investment Trust (PMT) vs. New York Mortgage Trust (NYMT)

New York Mortgage Trust (NASDAQ: NYMT) and PennyMac Mortgage Investment Trust (NYSE:PMT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Insider and Institutional Ownership

36.1% of New York Mortgage Trust shares are held by institutional investors. Comparatively, 62.5% of PennyMac Mortgage Investment Trust shares are held by institutional investors. 1.3% of New York Mortgage Trust shares are held by company insiders. Comparatively, 1.8% of PennyMac Mortgage Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares New York Mortgage Trust and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York Mortgage Trust 19.62% 10.05% 0.71%
PennyMac Mortgage Investment Trust 37.97% 8.67% 1.95%

Valuation & Earnings

This table compares New York Mortgage Trust and PennyMac Mortgage Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New York Mortgage Trust $107.14 million 6.51 $57.06 million $0.51 12.22
PennyMac Mortgage Investment Trust $318.72 million 3.68 $114.30 million $1.71 10.26

PennyMac Mortgage Investment Trust has higher revenue and earnings than New York Mortgage Trust. PennyMac Mortgage Investment Trust is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for New York Mortgage Trust and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York Mortgage Trust 0 3 1 0 2.25
PennyMac Mortgage Investment Trust 0 3 3 0 2.50

New York Mortgage Trust currently has a consensus target price of $6.42, indicating a potential upside of 3.00%. PennyMac Mortgage Investment Trust has a consensus target price of $17.00, indicating a potential downside of 3.13%. Given New York Mortgage Trust’s higher possible upside, analysts plainly believe New York Mortgage Trust is more favorable than PennyMac Mortgage Investment Trust.

Risk & Volatility

New York Mortgage Trust has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Dividends

New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 12.8%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.7%. New York Mortgage Trust pays out 156.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

PennyMac Mortgage Investment Trust beats New York Mortgage Trust on 10 of the 16 factors compared between the two stocks.

New York Mortgage Trust Company Profile

New York Mortgage Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. The Company’s investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets, non-agency residential mortgage-backed securities (RMBS), multi-family commercial mortgage-backed securities, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate and agency RMBS. It may acquire and manage various other types of mortgage-related and financial assets, including, without limitation, collateralized mortgage obligations and securities issued by newly originated residential securitizations, including credit sensitive securities from these securitizations.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust is a specialty finance company that invests primarily in residential mortgage loans and mortgage-related assets. The Company conducts all of its operations, and makes all of its investments, through PennyMac Operating Partnership, L.P. (its Operating Partnership) and its subsidiaries. It operates through two segments: correspondent production and investment activities. Its investment activities segment represents the Company’s investments in mortgage-related assets. The correspondent production segment represents the Company’s operations aimed at serving as an intermediary between mortgage lenders and the capital markets by purchasing, pooling and reselling newly originated prime credit quality mortgage loans either directly or in the form of MBS, using the services of PNMAC Capital Management (the Manager or PCM) and PennyMac Loan Services, LLC (PLS), both indirect subsidiaries of PennyMac Financial Services, Inc. (PFSI or PennyMac).

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