Apollo Commercial Real Estate Finance (ARI) vs INVESCO MORTGAGE CAPITAL INC (IVR)

Apollo Commercial Real Estate Finance and INVESCO MORTGAGE CAPITAL INC are both Reit Mortgage companies. Apollo Commercial Real Estate Finance is the larger, with a market value of $804.7M against $693.2M — 1.2× the size. INVESCO MORTGAGE CAPITAL INC trades at the lower P/E: 4.3× against 7.8×. INVESCO MORTGAGE CAPITAL INC grew revenue faster over the last twelve months: 7.29% against −14.7%. Apollo Commercial Real Estate Finance has the higher net margin (50.3% vs 33.9%) and the higher return on invested capital (339.7% vs 0.69%). Both pay a dividend; INVESCO MORTGAGE CAPITAL INC yields more (18.8% vs 12.7%). Across the 23 metrics below, Apollo Commercial Real Estate Finance leads on 13 and INVESCO MORTGAGE CAPITAL INC on 10.

Valuation

Metric ARI IVR Reit Mortgage median
P/E 7.80 4.33 7.80
P/S 3.44 1.93 1.90
P/B 0.65 0.74 0.61
Price to free cash flow 38.20 3.66 5.90
EV/EBITDA 10.08 100.35 28.40
EV/Sales 3.37 23.17 16.02
Earnings yield 12.82% 23.09% 7.68%
Free cash flow yield 2.62% 27.29% 11.60%

Profitability

Metric ARI IVR Reit Mortgage median
Gross margin 87.84% 30.40% 100.00%
Operating margin 35.13% 24.27% 35.40%
Net margin 50.33% 33.93% 11.85%
Free cash flow margin 9.00% 52.56% 26.68%
Return on equity 7.72% 15.68% 4.81%
Return on assets 2.00% 1.70% 0.62%
Return on invested capital 339.65% 0.69% 1.22%

Growth

Metric ARI IVR Reit Mortgage median
Revenue growth (TTM) (14.66%) 7.29% 4.70%
EPS growth (last fiscal year) 183.51% 103.08% —
Revenue growth, 5-year CAGR (0.51%) 1.06% 14.60%
Net income growth, 5-year CAGR 88.28% 0.00% 0.00%

Health

Metric ARI IVR Reit Mortgage median
Debt to equity 0.00 6.27 3.30
Current ratio 2.45 0.04 1.00
Net debt to EBITDA 9.96 105.08 18.31

Dividend

Metric ARI IVR Reit Mortgage median
Dividend yield 12.68% 18.77% 13.05%
Payout ratio 1.69 0.41 1.24

Size

Metric ARI IVR Reit Mortgage median
Market cap 804.69m 693.21m 517.48m

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