Ellington Financial Inc. (EFC) vs MFA Financial, Inc. (MFA)

Ellington Financial Inc. and MFA Financial, Inc. are both Reit Mortgage companies. Ellington Financial Inc. is the larger, with a market value of $1.5B against $673.3M — 2.2× the size. MFA Financial, Inc. trades at the lower P/E: 6.5× against 7.0×. Ellington Financial Inc. grew revenue faster over the last twelve months: 31.0% against 4.90%. Ellington Financial Inc. has the higher net margin (33.3% vs 13.8%) and the lower return on invested capital (2.52% vs 2.88%). Both pay a dividend; MFA Financial, Inc. yields more (21.6% vs 13.7%). Across the 22 metrics below, MFA Financial, Inc. leads on 14 and Ellington Financial Inc. on 8.

Valuation

Metric EFC MFA Reit Mortgage median
P/E 6.96 6.53 6.76
P/S 2.46 0.90 1.61
P/B 0.81 0.39 0.51
Price to free cash flow n/m 1.92 5.34
EV/EBITDA 24.08 19.62 28.22
EV/Sales 31.97 15.73 15.91
Earnings yield 14.37% 15.32% 7.54%
Free cash flow yield (38.13%) 52.01% 13.22%

Profitability

Metric EFC MFA Reit Mortgage median
Gross margin 95.29% 100.00% 100.00%
Operating margin 132.74% 79.06% 35.40%
Net margin 33.26% 13.82% 11.85%
Free cash flow margin (93.67%) 46.95% 26.68%
Return on equity 12.37% 5.88% 5.20%
Return on assets 1.02% 0.83% 0.62%
Return on invested capital 2.52% 2.88% 1.22%

Growth

Metric EFC MFA Reit Mortgage median
Revenue growth (TTM) 30.99% 4.90% 4.70%
EPS growth (last fiscal year) (12.50%) 58.54% 45.25%
Revenue growth, 5-year CAGR 23.30% 11.47% 14.60%
Net income growth, 5-year CAGR 47.10% 0.00% 0.00%

Health

Metric EFC MFA Reit Mortgage median
Debt to equity 9.37 6.56 3.30
Current ratio 52.06 0.00 1.00
Net debt to EBITDA 25.85 17.85 18.31

Dividend

Metric EFC MFA Reit Mortgage median
Dividend yield 13.67% 21.62% 16.93%
Payout ratio 0.95 1.44 1.28

Size

Metric EFC MFA Reit Mortgage median
Market cap 1.47b 673.25m 466.15m

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