ARMOUR Residential REIT, Inc. (ARR) vs Orchid Island Capital, Inc. (ORC)

ARMOUR Residential REIT, Inc. and Orchid Island Capital, Inc. are both Reit Mortgage companies. ARMOUR Residential REIT, Inc. is the larger, with a market value of $1.9B against $963.0M — 1.9× the size. ARMOUR Residential REIT, Inc. has negative trailing earnings, so its P/E is not meaningful; Orchid Island Capital, Inc. trades at 99.6×. Orchid Island Capital, Inc. grew revenue faster over the last twelve months: 74.8% against 42.9%. Orchid Island Capital, Inc. has the higher net margin (−1.01% vs −6.34%) and the higher return on invested capital (25.0% vs 2.78%). Both pay a dividend; Orchid Island Capital, Inc. yields more (26.1% vs 22.9%). Across the 21 metrics below, Orchid Island Capital, Inc. leads on 13 and ARMOUR Residential REIT, Inc. on 8.

Valuation

Metric ARR ORC Reit Mortgage median
P/E n/m 99.60 14.55
P/S 1.77 1.60 1.72
P/B 0.77 0.84 0.52
Price to free cash flow 3.98 4.06 4.35
EV/EBITDA 21.84 2.51 28.27
EV/Sales 20.57 1.61 15.73
Earnings yield (0.24%) 1.00% 0.23%
Free cash flow yield 25.13% 24.64% 13.86%

Profitability

Metric ARR ORC Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 93.69% 64.27% 31.94%
Net margin (6.34%) (1.01%) (1.81%)
Free cash flow margin 44.56% 39.39% 27.05%
Return on equity (2.90%) (0.56%) (0.49%)
Return on assets (0.31%) (0.06%) (0.06%)
Return on invested capital 2.78% 25.00% 0.79%

Growth

Metric ARR ORC Reit Mortgage median
Revenue growth (TTM) 42.92% 74.76% 1.39%
EPS growth (last fiscal year) 747.06% 117.54% 45.25%
Revenue growth, 5-year CAGR 36.42% 28.97% 14.60%
Net income growth, 5-year CAGR 0.00% 136.97% 0.00%

Health

Metric ARR ORC Reit Mortgage median
Debt to equity 8.24 0.37 2.91
Current ratio 0.03 0.00 0.82
Net debt to EBITDA 23.82 (1.28) 18.31

Dividend

Metric ARR ORC Reit Mortgage median
Dividend yield 22.93% 26.10% 17.37%
Payout ratio 0.84 26.00 1.87

Size

Metric ARR ORC Reit Mortgage median
Market cap 1.87b 963.03m 409.49m

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