Analyzing AGNC Investment (NASDAQ:AGNC) & Apartment Investment and Management (NYSE:AIV)

Apartment Investment and Management (NYSE:AIV) and AGNC Investment (NASDAQ:AGNC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Dividends

Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 11.8%. AGNC Investment pays an annual dividend of $1.44 per share and has a dividend yield of 15.1%. Apartment Investment and Management pays out -85.6% of its earnings in the form of a dividend. AGNC Investment pays out 158.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Apartment Investment and Management and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	-113.14%	-51.94%	-10.54%
AGNC Investment	16.15%	26.21%	2.36%

Valuation and Earnings

This table compares Apartment Investment and Management and AGNC Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Investment and Management	$198.40 million	6.25	-$166.20 million	($1.18)	-7.25
AGNC Investment	$514.00 million	13.49	$155.00 million	$0.91	10.48

AGNC Investment has higher revenue and earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than AGNC Investment, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.3% of Apartment Investment and Management shares are held by institutional investors. Comparatively, 38.3% of AGNC Investment shares are held by institutional investors. 3.0% of Apartment Investment and Management shares are held by company insiders. Comparatively, 0.5% of AGNC Investment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Apartment Investment and Management has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, AGNC Investment has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Apartment Investment and Management and AGNC Investment, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	0	0	0	0	N/A
AGNC Investment	0	4	7	0	2.64

AGNC Investment has a consensus price target of $10.33, indicating a potential upside of 8.32%. Given AGNC Investment’s higher probable upside, analysts plainly believe AGNC Investment is more favorable than Apartment Investment and Management.

Summary

AGNC Investment beats Apartment Investment and Management on 12 of the 15 factors compared between the two stocks.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco’s mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).