Contrasting Invesco Mortgage Capital (IVR) and Its Competitors

Invesco Mortgage Capital (NYSE: IVR) is one of 37 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its peers? We will compare Invesco Mortgage Capital to related companies based on the strength of its institutional ownership, valuation, analyst recommendations, earnings, profitability, dividends and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Invesco Mortgage Capital and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco Mortgage Capital 0 2 2 0 2.50
Invesco Mortgage Capital Competitors 114 844 842 31 2.43

Invesco Mortgage Capital presently has a consensus price target of $17.75, indicating a potential downside of 1.11%. As a group, “Mortgage REITs” companies have a potential upside of 2.25%. Given Invesco Mortgage Capital’s peers higher probable upside, analysts plainly believe Invesco Mortgage Capital has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Invesco Mortgage Capital and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Invesco Mortgage Capital $609.31 million N/A 4.14
Invesco Mortgage Capital Competitors $320.94 million $123.24 million 1.54

Invesco Mortgage Capital has higher revenue, but lower earnings than its peers. Invesco Mortgage Capital is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Invesco Mortgage Capital pays an annual dividend of $1.64 per share and has a dividend yield of 9.1%. Invesco Mortgage Capital pays out 37.8% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend.

Risk & Volatility

Invesco Mortgage Capital has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Invesco Mortgage Capital’s peers have a beta of 0.71, suggesting that their average share price is 29% less volatile than the S&P 500.

Profitability

This table compares Invesco Mortgage Capital and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco Mortgage Capital 71.92% 8.97% 1.11%
Invesco Mortgage Capital Competitors 49.98% 10.38% 2.69%

Insider & Institutional Ownership

63.4% of Invesco Mortgage Capital shares are owned by institutional investors. Comparatively, 57.8% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.3% of Invesco Mortgage Capital shares are owned by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Invesco Mortgage Capital beats its peers on 8 of the 14 factors compared.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. is a holding company, which conducts its businesses through IAS Operating Partnership LP (the Operating Partnership) and subsidiaries. The Company’s objective is to provide risk-adjusted returns to its investors through dividends and through capital appreciation. It invests in residential mortgage-backed securities that are guaranteed by the United States Government agency, such as the Government National Mortgage Association or a federally chartered corporation, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (collectively Agency RMBS); RMBS that are not guaranteed by the United States Government agency; Credit risk transfer securities that are unsecured obligations issued by government-sponsored enterprises; commercial mortgage-backed securities; residential and commercial mortgage loans, and other real estate-related financing arrangements. It is externally managed and advised by Invesco Advisers, Inc.

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