ARMOUR Residential REIT, Inc. (ARR) vs Dynex Capital, Inc. (DX)

ARMOUR Residential REIT, Inc. and Dynex Capital, Inc. are both Reit Mortgage companies. Dynex Capital, Inc. is the larger, with a market value of $2.8B against $1.9B — 1.5× the size. ARMOUR Residential REIT, Inc. has negative trailing earnings, so its P/E is not meaningful; Dynex Capital, Inc. trades at 47.2×. Dynex Capital, Inc. grew revenue faster over the last twelve months: 140.4% against 42.9%. Dynex Capital, Inc. has the higher net margin (−5.66% vs −6.34%) and the lower return on invested capital (2.47% vs 2.78%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (22.9% vs 19.0%). Across the 21 metrics below, ARMOUR Residential REIT, Inc. leads on 11 and Dynex Capital, Inc. on 10.

Valuation

Metric ARR DX Reit Mortgage median
P/E n/m 47.21 14.55
P/S 1.77 2.53 1.72
P/B 0.77 0.96 0.52
Price to free cash flow 3.98 10.84 4.35
EV/EBITDA 21.84 24.61 28.27
EV/Sales 20.57 23.45 15.73
Earnings yield (0.24%) 2.12% 0.23%
Free cash flow yield 25.13% 9.22% 13.86%

Profitability

Metric ARR DX Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 93.69% 93.76% 31.94%
Net margin (6.34%) (5.66%) (1.81%)
Free cash flow margin 44.56% 23.35% 27.05%
Return on equity (2.90%) (2.59%) (0.49%)
Return on assets (0.31%) (0.29%) (0.06%)
Return on invested capital 2.78% 2.47% 0.79%

Growth

Metric ARR DX Reit Mortgage median
Revenue growth (TTM) 42.92% 140.39% 1.39%
EPS growth (last fiscal year) 747.06% 65.77% 45.25%
Revenue growth, 5-year CAGR 36.42% 40.78% 14.60%
Net income growth, 5-year CAGR 0.00% 14.06% 0.00%

Health

Metric ARR DX Reit Mortgage median
Debt to equity 8.24 7.93 2.91
Current ratio 0.03 1.15 0.82
Net debt to EBITDA 23.82 25.53 18.31

Dividend

Metric ARR DX Reit Mortgage median
Dividend yield 22.93% 18.98% 17.37%
Payout ratio 0.84 9.37 1.87

Size

Metric ARR DX Reit Mortgage median
Market cap 1.87b 2.79b 409.49m

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