Financial Contrast: Apartment Investment and Management (NYSE:AIV) versus AGNC Investment (NASDAQ:AGNC)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$514.00 million	14.04	$155.00 million	$0.91	10.91
Apartment Investment and Management	$198.40 million	6.35	-$166.20 million	($1.18)	-7.37

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.

Insider and Institutional Ownership

38.3% of AGNC Investment shares are owned by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are owned by institutional investors. 0.5% of AGNC Investment shares are owned by company insiders. Comparatively, 3.0% of Apartment Investment and Management shares are owned 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.

Analyst Ratings

This is a summary of current recommendations and price targets for AGNC Investment and Apartment Investment and Management, as reported by MarketBeat.com.

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

AGNC Investment currently has a consensus target price of $10.33, suggesting a potential upside of 4.06%. Given AGNC Investment’s higher possible upside, research analysts plainly believe AGNC Investment is more favorable than Apartment Investment and Management.

Profitability

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

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

Risk & Volatility

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

Dividends

AGNC Investment pays an annual dividend of $1.44 per share and has a dividend yield of 14.5%. Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 11.6%. 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. Apartment Investment and Management pays out -85.6% of its earnings in the form of a dividend.

Summary

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

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).

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.