AGNC Investment Corp. (AGNC) vs ARMOUR Residential REIT, Inc. (ARR)

AGNC Investment Corp. and ARMOUR Residential REIT, Inc. are both Reit Mortgage companies. AGNC Investment Corp. is the larger, with a market value of $11.5B against $2.1B — 5.6× the size. ARMOUR Residential REIT, Inc. trades at the lower P/E: 3.8× against 5.0×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 51.5% against 19.0%. AGNC Investment Corp. has the higher net margin (53.4% vs 43.6%) and the lower return on invested capital (1.41% vs 2.60%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (24.7% vs 15.2%). Across the 22 metrics below, ARMOUR Residential REIT, Inc. leads on 18 and AGNC Investment Corp. on 4.

Valuation

Metric AGNC ARR Reit Mortgage median
P/E 5.01 3.78 7.80
P/S 2.85 1.90 1.90
P/B 1.05 0.71 0.61
Price to free cash flow 12.57 5.70 5.90
EV/EBITDA 40.17 23.03 28.40
EV/Sales 25.40 21.70 16.02
Earnings yield 19.96% 26.45% 7.68%
Free cash flow yield 7.96% 17.55% 11.60%

Profitability

Metric AGNC ARR Reit Mortgage median
Gross margin 25.01% 100.00% 100.00%
Operating margin 57.94% 93.43% 35.40%
Net margin 53.44% 43.60% 11.85%
Free cash flow margin 22.65% 33.29% 26.68%
Return on equity 21.67% 19.74% 4.81%
Return on assets 1.87% 2.15% 0.62%
Return on invested capital 1.41% 2.60% 1.22%

Growth

Metric AGNC ARR Reit Mortgage median
Revenue growth (TTM) 18.95% 51.54% 4.70%
EPS growth (last fiscal year) 58.06% 747.06% —
Revenue growth, 5-year CAGR 18.32% 36.42% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AGNC ARR Reit Mortgage median
Debt to equity 7.17 7.54 3.30
Current ratio 0.23 0.04 1.00
Net debt to EBITDA 45.27 23.82 18.31

Dividend

Metric AGNC ARR Reit Mortgage median
Dividend yield 15.21% 24.70% 13.05%
Payout ratio 1.18 24.00 1.24

Size

Metric AGNC ARR Reit Mortgage median
Market cap 11.51b 2.05b 517.48m

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