ARMOUR Residential REIT, Inc. (ARR) vs Ladder Capital Corp (LADR)

ARMOUR Residential REIT, Inc. and Ladder Capital Corp are both Reit Mortgage companies. ARMOUR Residential REIT, Inc. is the larger, with a market value of $2.1B against $1.2B — 1.8× the size. ARMOUR Residential REIT, Inc. trades at the lower P/E: 3.8× against 21.6×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 51.5% against −11.0%. Ladder Capital Corp has the higher net margin (54.6% vs 43.6%) and the lower return on invested capital (0.56% vs 2.60%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (24.7% vs 8.62%). Across the 21 metrics below, ARMOUR Residential REIT, Inc. leads on 16 and Ladder Capital Corp on 5.

Valuation

Metric ARR LADR Reit Mortgage median
P/E 3.78 21.62 7.80
P/S 1.90 11.83 1.90
P/B 0.71 0.79 0.61
Price to free cash flow 5.70 12.02 5.90
EV/EBITDA 23.03 49.67 28.40
EV/Sales 21.70 53.10 16.02
Earnings yield 26.45% 4.63% 7.68%
Free cash flow yield 17.55% 8.32% 11.60%

Profitability

Metric ARR LADR Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 93.43% 49.94% 35.40%
Net margin 43.60% 54.61% 11.85%
Free cash flow margin 33.29% 99.69% 26.68%
Return on equity 19.74% 3.57% 4.81%
Return on assets 2.15% 1.04% 0.62%
Return on invested capital 2.60% 0.56% 1.22%

Growth

Metric ARR LADR Reit Mortgage median
Revenue growth (TTM) 51.54% (10.95%) 4.70%
EPS growth (last fiscal year) 747.06% (40.70%) —
Revenue growth, 5-year CAGR 36.42% 49.36% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARR LADR Reit Mortgage median
Debt to equity 7.54 2.81 3.30
Current ratio 0.04 44.15 1.00
Net debt to EBITDA 23.82 36.15 18.31

Dividend

Metric ARR LADR Reit Mortgage median
Dividend yield 24.70% 8.62% 13.05%
Payout ratio 24.00 0.83 1.24

Size

Metric ARR LADR Reit Mortgage median
Market cap 2.05b 1.15b 517.48m

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