INVESCO MORTGAGE CAPITAL INC (IVR) vs MFA Financial, Inc. (MFA)

INVESCO MORTGAGE CAPITAL INC and MFA Financial, Inc. are both Reit Mortgage companies. MFA Financial, Inc. is the larger, with a market value of $824.9M against $693.2M — 1.2× the size. INVESCO MORTGAGE CAPITAL INC trades at the lower P/E: 4.3× against 8.0×. INVESCO MORTGAGE CAPITAL INC grew revenue faster over the last twelve months: 7.29% against 4.90%. INVESCO MORTGAGE CAPITAL INC has the higher net margin (33.9% vs 13.8%) and the lower return on invested capital (0.69% vs 2.88%). Both pay a dividend; INVESCO MORTGAGE CAPITAL INC yields more (18.8% vs 13.1%). Across the 22 metrics below, INVESCO MORTGAGE CAPITAL INC leads on 11 and MFA Financial, Inc. on 11.

Valuation

Metric IVR MFA Reit Mortgage median
P/E 4.33 8.01 7.80
P/S 1.93 1.11 1.90
P/B 0.74 0.48 0.61
Price to free cash flow 3.66 2.36 5.90
EV/EBITDA 100.35 19.88 28.40
EV/Sales 23.17 15.94 16.02
Earnings yield 23.09% 12.48% 7.68%
Free cash flow yield 27.29% 42.40% 11.60%

Profitability

Metric IVR MFA Reit Mortgage median
Gross margin 30.40% 100.00% 100.00%
Operating margin 24.27% 79.06% 35.40%
Net margin 33.93% 13.82% 11.85%
Free cash flow margin 52.56% 46.95% 26.68%
Return on equity 15.68% 5.88% 4.81%
Return on assets 1.70% 0.83% 0.62%
Return on invested capital 0.69% 2.88% 1.22%

Growth

Metric IVR MFA Reit Mortgage median
Revenue growth (TTM) 7.29% 4.90% 4.70%
EPS growth (last fiscal year) 103.08% 58.54% —
Revenue growth, 5-year CAGR 1.06% 11.47% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IVR MFA Reit Mortgage median
Debt to equity 6.27 6.56 3.30
Current ratio 0.04 0.00 1.00
Net debt to EBITDA 105.08 17.85 18.31

Dividend

Metric IVR MFA Reit Mortgage median
Dividend yield 18.77% 13.05% 13.05%
Payout ratio 0.41 1.51 1.24

Size

Metric IVR MFA Reit Mortgage median
Market cap 693.21m 824.88m 517.48m

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