Dynex Capital, Inc. (DX) vs Ellington Financial Inc. (EFC)

Dynex Capital, Inc. and Ellington Financial Inc. are both Reit Mortgage companies. Dynex Capital, Inc. is the larger, with a market value of $2.8B against $1.5B — 1.9× the size. Ellington Financial Inc. trades at the lower P/E: 7.0× against 47.2×. Dynex Capital, Inc. grew revenue faster over the last twelve months: 140.4% against 31.0%. Ellington Financial Inc. has the higher net margin (33.3% vs −5.66%) and the higher return on invested capital (2.52% vs 2.47%). Both pay a dividend; Dynex Capital, Inc. yields more (19.0% vs 13.5%). Across the 22 metrics below, Ellington Financial Inc. leads on 12 and Dynex Capital, Inc. on 10.

Valuation

Metric DX EFC Reit Mortgage median
P/E 47.21 7.02 14.55
P/S 2.53 2.48 1.72
P/B 0.96 0.81 0.52
Price to free cash flow 10.84 n/m 4.35
EV/EBITDA 24.61 24.10 28.27
EV/Sales 23.45 31.99 15.73
Earnings yield 2.12% 14.24% 0.23%
Free cash flow yield 9.22% (37.76%) 13.86%

Profitability

Metric DX EFC Reit Mortgage median
Gross margin 100.00% 95.29% 100.00%
Operating margin 93.76% 132.74% 31.94%
Net margin (5.66%) 33.26% (1.81%)
Free cash flow margin 23.35% (93.67%) 27.05%
Return on equity (2.59%) 12.37% (0.49%)
Return on assets (0.29%) 1.02% (0.06%)
Return on invested capital 2.47% 2.52% 0.79%

Growth

Metric DX EFC Reit Mortgage median
Revenue growth (TTM) 140.39% 30.99% 1.39%
EPS growth (last fiscal year) 65.77% (12.50%) 45.25%
Revenue growth, 5-year CAGR 40.78% 23.30% 14.60%
Net income growth, 5-year CAGR 14.06% 47.10% 0.00%

Health

Metric DX EFC Reit Mortgage median
Debt to equity 7.93 9.37 2.91
Current ratio 1.15 52.06 0.82
Net debt to EBITDA 25.53 25.85 18.31

Dividend

Metric DX EFC Reit Mortgage median
Dividend yield 18.98% 13.54% 17.37%
Payout ratio 9.37 0.95 1.87

Size

Metric DX EFC Reit Mortgage median
Market cap 2.79b 1.48b 409.49m

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