Head-To-Head Analysis: Douglas Emmett (DEI) and Invesco Mortgage Capital (IVR)

Douglas Emmett (NYSE: IVR) and Invesco Mortgage Capital (NYSE:IVR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Risk and Volatility

Douglas Emmett has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Invesco Mortgage Capital has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Dividends

Douglas Emmett pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Invesco Mortgage Capital pays an annual dividend of $1.68 per share and has a dividend yield of 10.4%. Douglas Emmett pays out 52.6% of its earnings in the form of a dividend. Douglas Emmett has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Douglas Emmett and Invesco Mortgage Capital’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Douglas Emmett $812.05 million 8.22 $94.44 million $1.90 20.66
Invesco Mortgage Capital $594.39 million 3.04 $348.60 million N/A N/A

Invesco Mortgage Capital has lower revenue, but higher earnings than Douglas Emmett.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Douglas Emmett and Invesco Mortgage Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Emmett 1 6 4 0 2.27
Invesco Mortgage Capital 0 3 0 0 2.00

Douglas Emmett presently has a consensus target price of $41.44, suggesting a potential upside of 5.56%. Invesco Mortgage Capital has a consensus target price of $16.67, suggesting a potential upside of 2.88%. Given Douglas Emmett’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Douglas Emmett is more favorable than Invesco Mortgage Capital.

Institutional and Insider Ownership

95.3% of Douglas Emmett shares are owned by institutional investors. Comparatively, 66.9% of Invesco Mortgage Capital shares are owned by institutional investors. 16.2% of Douglas Emmett shares are owned by insiders. Comparatively, 0.3% of Invesco Mortgage Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Douglas Emmett and Invesco Mortgage Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Douglas Emmett 13.94% 2.96% 1.39%
Invesco Mortgage Capital 52.70% 10.89% 1.19%

Summary

Douglas Emmett beats Invesco Mortgage Capital on 10 of the 15 factors compared between the two stocks.

Douglas Emmett Company Profile

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information about Douglas Emmett, please visit our website at www.douglasemmett.com.

Invesco Mortgage Capital Company Profile

Invesco Mortgage Capital, Inc. engages in investing, financing and managing residential and commercial mortgage-backed securities and mortgage loans. The firm primarily invests in the following: Residential mortgage-backed securities (RMBS), Commercial mortgage-backed securities, RMBS that are not guaranteed by a U.S. government agency, Credit risk transfer securities that are unsecured obligations issued by government-sponsored enterprises, Residential and commercial mortgage loans and Other real estate-related financing arrangements. Invesco Mortgage Capital was founded on June 5, 2008 and is headquartered in Atlanta, GA.

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