ARMOUR Residential REIT, Inc. (ARR) vs PennyMac Mortgage Investment Trust (PMT)

ARMOUR Residential REIT, Inc. and PennyMac Mortgage Investment Trust are both Reit Mortgage companies. ARMOUR Residential REIT, Inc. is the larger, with a market value of $1.9B against $717.7M — 2.6× the size. ARMOUR Residential REIT, Inc. has negative trailing earnings, so its P/E is not meaningful; PennyMac Mortgage Investment Trust trades at 17.9×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 42.9% against 11.4%. PennyMac Mortgage Investment Trust has the higher net margin (3.52% vs −6.34%) and the lower return on invested capital (2.53% vs 2.78%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (22.9% vs 19.4%). Across the 21 metrics below, ARMOUR Residential REIT, Inc. leads on 11 and PennyMac Mortgage Investment Trust on 10.

Valuation

Metric ARR PMT Reit Mortgage median
P/E n/m 17.89 14.55
P/S 1.77 0.62 1.72
P/B 0.77 0.58 0.52
Price to free cash flow 3.98 n/m 4.35
EV/EBITDA 21.84 23.13 28.27
EV/Sales 20.57 19.58 15.73
Earnings yield (0.24%) 5.59% 0.23%
Free cash flow yield 25.13% (1,576.58%) 13.86%

Profitability

Metric ARR PMT Reit Mortgage median
Gross margin 100.00% 90.73% 100.00%
Operating margin 93.69% 83.11% 31.94%
Net margin (6.34%) 3.52% (1.81%)
Free cash flow margin 44.56% (979.57%) 27.05%
Return on equity (2.90%) 3.16% (0.49%)
Return on assets (0.31%) 0.18% (0.06%)
Return on invested capital 2.78% 2.53% 0.79%

Growth

Metric ARR PMT Reit Mortgage median
Revenue growth (TTM) 42.92% 11.44% 1.39%
EPS growth (last fiscal year) 747.06% (27.74%) 45.25%
Revenue growth, 5-year CAGR 36.42% 9.74% 14.60%
Net income growth, 5-year CAGR 0.00% 25.95% 0.00%

Health

Metric ARR PMT Reit Mortgage median
Debt to equity 8.24 12.46 2.91
Current ratio 0.03 1.60 0.82
Net debt to EBITDA 23.82 16.25 18.31

Dividend

Metric ARR PMT Reit Mortgage median
Dividend yield 22.93% 19.44% 17.37%
Payout ratio 0.84 3.48 1.87

Size

Metric ARR PMT Reit Mortgage median
Market cap 1.87b 717.68m 409.49m

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