AG Mortgage Investment Trust (NYSE:MITT) versus Power REIT (NYSE:PW) Critical Analysis

Power REIT (NYSE:PW) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Power REIT and AG Mortgage Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Power REIT	0	0	0	0	0.00
AG Mortgage Investment Trust	0	1	3	0	2.75

AG Mortgage Investment Trust has a consensus price target of $8.25, indicating a potential upside of 25.00%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts clearly believe AG Mortgage Investment Trust is more favorable than Power REIT.

Profitability

This table compares Power REIT and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Power REIT	-752.26%	-215.55%	-39.65%
AG Mortgage Investment Trust	20.19%	9.70%	0.46%

Institutional & Insider Ownership

14.7% of Power REIT shares are held by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are held by institutional investors. 26.7% of Power REIT shares are held by company insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Power REIT and AG Mortgage Investment Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Power REIT	$2.36 million	1.74	-$14.37 million	($7.08)	-0.17
AG Mortgage Investment Trust	$260.33 million	0.75	$53.78 million	$2.28	2.89

AG Mortgage Investment Trust has higher revenue and earnings than Power REIT. Power REIT is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Power REIT has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Summary

AG Mortgage Investment Trust beats Power REIT on 12 of the 14 factors compared between the two stocks.

About Power REIT

Power REIT, with a focus on the Triple Bottom Line and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture in the form of greenhouses for the cultivation of food and cannabis.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.