ARMOUR Residential REIT, Inc. (ARR) vs Rithm Capital Corp. (RITM)

ARMOUR Residential REIT, Inc. and Rithm Capital Corp. are both Reit Mortgage companies. Rithm Capital Corp. is the larger, with a market value of $5.3B against $1.9B — 2.8× the size. ARMOUR Residential REIT, Inc. has negative trailing earnings, so its P/E is not meaningful; Rithm Capital Corp. trades at 14.6×. ARMOUR Residential REIT, Inc. grew revenue faster over the last twelve months: 42.9% against 5.98%. Rithm Capital Corp. has the higher net margin (9.89% vs −6.34%) and the higher return on invested capital (3.53% vs 2.78%). Both pay a dividend; ARMOUR Residential REIT, Inc. yields more (22.9% vs 10.6%). Across the 19 metrics below, Rithm Capital Corp. leads on 13 and ARMOUR Residential REIT, Inc. on 6.

Valuation

Metric ARR RITM Reit Mortgage median
P/E n/m 14.55 14.55
P/S 1.77 1.46 1.72
P/B 0.77 0.70 0.52
Price to free cash flow 3.98 n/m 4.35
EV/EBITDA 21.84 15.17 28.27
EV/Sales 20.57 12.44 15.73
Earnings yield (0.24%) 6.87% 0.23%
Free cash flow yield 25.13% (30.22%) 13.86%

Profitability

Metric ARR RITM Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 93.69% 76.32% 31.94%
Net margin (6.34%) 9.89% (1.81%)
Free cash flow margin 44.56% (44.06%) 27.05%
Return on equity (2.90%) 4.86% (0.49%)
Return on assets (0.31%) 0.69% (0.06%)
Return on invested capital 2.78% 3.53% 0.79%

Growth

Metric ARR RITM Reit Mortgage median
Revenue growth (TTM) 42.92% 5.98% 1.39%
EPS growth (last fiscal year) 747.06% (37.72%) 45.25%
Revenue growth, 5-year CAGR 36.42% 64.52% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARR RITM Reit Mortgage median
Debt to equity 8.24 4.62 2.91
Current ratio 0.03 0.55 0.82
Net debt to EBITDA 23.82 15.22 18.31

Dividend

Metric ARR RITM Reit Mortgage median
Dividend yield 22.93% 10.57% 17.37%
Payout ratio 0.84 1.59 1.87

Size

Metric ARR RITM Reit Mortgage median
Market cap 1.87b 5.28b 409.49m

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