Head-To-Head Comparison: Ellington Financial (EFC) versus Terreno Realty (TRNO)

Ellington Financial (NYSE:EFC) and Terreno Realty (NYSE:TRNO) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

46.3% of Ellington Financial shares are held by institutional investors. Comparatively, 99.2% of Terreno Realty shares are held by institutional investors. 11.1% of Ellington Financial shares are held by insiders. Comparatively, 2.6% of Terreno Realty shares are held 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.

Earnings & Valuation

This table compares Ellington Financial and Terreno Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ellington Financial $93.96 million 5.12 $33.98 million $1.08 14.77
Terreno Realty $132.48 million 16.15 $53.09 million $1.09 33.61

Terreno Realty has higher revenue and earnings than Ellington Financial. Ellington Financial is trading at a lower price-to-earnings ratio than Terreno Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

Ellington Financial pays an annual dividend of $1.64 per share and has a dividend yield of 10.3%. Terreno Realty pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Ellington Financial pays out 151.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty pays out 80.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings for Ellington Financial and Terreno Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ellington Financial 0 2 3 0 2.60
Terreno Realty 0 4 7 0 2.64

Ellington Financial presently has a consensus price target of $17.90, suggesting a potential upside of 12.23%. Terreno Realty has a consensus price target of $38.60, suggesting a potential upside of 5.38%. Given Ellington Financial’s higher probable upside, equities analysts clearly believe Ellington Financial is more favorable than Terreno Realty.

Profitability

This table compares Ellington Financial and Terreno Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ellington Financial 51.11% 5.85% 1.15%
Terreno Realty 42.08% 5.72% 3.75%

Volatility & Risk

Ellington Financial has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Summary

Terreno Realty beats Ellington Financial on 12 of the 17 factors compared between the two stocks.

About Ellington Financial

Ellington Financial LLC, through its subsidiary Ellington Financial Operating Partnership LLC, operates as a specialty finance company in the United States. The company acquires and manages mortgage-related assets, including residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime residential mortgage loans; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; commercial mortgage loans and other commercial real estate debt; and residential mortgage loans. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; equity investments in mortgage-related entities; and other strategic investments, as well as invests in corporate debt and equity securities. In addition, it offers consumer loans and asset-backed securities backed by consumer and commercial assets. Ellington Financial LLC was founded in 2007 and is based in Old Greenwich, Connecticut.

About Terreno Realty

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

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