Apollo Commercial Real Estate Finance (ARI) vs MFA Financial, Inc. (MFA)

Apollo Commercial Real Estate Finance and MFA Financial, Inc. are both Reit Mortgage companies. Apollo Commercial Real Estate Finance is the larger, with a market value of $824.0M against $677.3M — 1.2× the size. MFA Financial, Inc. trades at the lower P/E: 6.5× against 8.0×. MFA Financial, Inc. grew revenue faster over the last twelve months: 4.90% against −14.7%. Apollo Commercial Real Estate Finance has the higher net margin (50.3% vs 13.8%) and the higher return on invested capital (339.7% vs 2.88%). Both pay a dividend; Apollo Commercial Real Estate Finance yields more (66.6% vs 21.9%). Across the 23 metrics below, Apollo Commercial Real Estate Finance leads on 12 and MFA Financial, Inc. on 11.

Valuation

Metric ARI MFA Reit Mortgage median
P/E 7.98 6.46 7.10
P/S 3.51 0.89 1.77
P/B 0.67 0.38 0.55
Price to free cash flow 39.05 1.90 5.36
EV/EBITDA 10.31 19.61 28.29
EV/Sales 3.45 15.72 15.90
Earnings yield 12.54% 15.48% 8.10%
Free cash flow yield 2.56% 52.56% 13.00%

Profitability

Metric ARI MFA Reit Mortgage median
Gross margin 87.84% 100.00% 100.00%
Operating margin 35.13% 79.06% 35.40%
Net margin 50.33% 13.82% 11.85%
Free cash flow margin 9.00% 46.95% 26.68%
Return on equity 7.72% 5.88% 4.81%
Return on assets 2.00% 0.83% 0.62%
Return on invested capital 339.65% 2.88% 1.22%

Growth

Metric ARI MFA Reit Mortgage median
Revenue growth (TTM) (14.66%) 4.90% 4.70%
EPS growth (last fiscal year) 183.51% 58.54% 45.25%
Revenue growth, 5-year CAGR (0.51%) 11.47% 14.60%
Net income growth, 5-year CAGR 88.28% 0.00% 0.00%

Health

Metric ARI MFA Reit Mortgage median
Debt to equity 0.00 6.56 3.30
Current ratio 2.45 0.00 1.00
Net debt to EBITDA 9.96 17.85 18.31

Dividend

Metric ARI MFA Reit Mortgage median
Dividend yield 66.61% 21.85% 17.34%
Payout ratio 5.31 1.44 1.28

Size

Metric ARI MFA Reit Mortgage median
Market cap 823.96m 677.29m 479.53m

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