Apollo Commercial Real Estate Finance (ARI) vs ARMOUR Residential REIT, Inc. (ARR)

Apollo Commercial Real Estate Finance and ARMOUR Residential REIT, Inc. are both Reit Mortgage companies. ARMOUR Residential REIT, Inc. is the larger, with a market value of $1.9B against $824.0M — 2.3× the size. ARMOUR Residential REIT, Inc. trades at the lower P/E: 3.5× against 8.0×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 51.5% against −14.7%. Apollo Commercial Real Estate Finance has the higher net margin (50.3% vs 43.6%) and the higher return on invested capital (339.7% vs 2.60%). Both pay a dividend; Apollo Commercial Real Estate Finance yields more (66.6% vs 21.8%). Across the 23 metrics below, ARMOUR Residential REIT, Inc. leads on 14 and Apollo Commercial Real Estate Finance on 9.

Valuation

Metric ARI ARR Reit Mortgage median
P/E 7.98 3.54 7.10
P/S 3.51 1.78 1.77
P/B 0.67 0.66 0.55
Price to free cash flow 39.05 5.33 5.36
EV/EBITDA 10.31 22.90 28.29
EV/Sales 3.45 21.58 15.90
Earnings yield 12.54% 28.26% 8.10%
Free cash flow yield 2.56% 18.74% 13.00%

Profitability

Metric ARI ARR Reit Mortgage median
Gross margin 87.84% 100.00% 100.00%
Operating margin 35.13% 93.43% 35.40%
Net margin 50.33% 43.60% 11.85%
Free cash flow margin 9.00% 33.29% 26.68%
Return on equity 7.72% 19.74% 4.81%
Return on assets 2.00% 2.15% 0.62%
Return on invested capital 339.65% 2.60% 1.22%

Growth

Metric ARI ARR Reit Mortgage median
Revenue growth (TTM) (14.66%) 51.54% 4.70%
EPS growth (last fiscal year) 183.51% 747.06% 45.25%
Revenue growth, 5-year CAGR (0.51%) 36.42% 14.60%
Net income growth, 5-year CAGR 88.28% 0.00% 0.00%

Health

Metric ARI ARR Reit Mortgage median
Debt to equity 0.00 7.54 3.30
Current ratio 2.45 0.04 1.00
Net debt to EBITDA 9.96 23.82 18.31

Dividend

Metric ARI ARR Reit Mortgage median
Dividend yield 66.61% 21.82% 17.34%
Payout ratio 5.31 0.77 1.28

Size

Metric ARI ARR Reit Mortgage median
Market cap 823.96m 1.93b 479.53m

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