Comparing AGNC Investment (NASDAQ:AGNCZ) and PennyMac Mortgage Investment Trust (NYSE:PMT)

PennyMac Mortgage Investment Trust (NYSE:PMT) and AGNC Investment (NASDAQ:AGNCZ) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Insider & Institutional Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares PennyMac Mortgage Investment Trust and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	41.38%	10.71%	0.72%
AGNC Investment	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$307.46 million	3.06	$127.87 million	$1.15	9.39
AGNC Investment	$1.61 billion	N/A	N/A	N/A	N/A

PennyMac Mortgage Investment Trust has higher earnings, but lower revenue than AGNC Investment.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PennyMac Mortgage Investment Trust and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	2	4	2	0	2.00
AGNC Investment	0	0	0	0	0.00

PennyMac Mortgage Investment Trust currently has a consensus price target of $12.80, suggesting a potential upside of 18.57%. Given PennyMac Mortgage Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe PennyMac Mortgage Investment Trust is more favorable than AGNC Investment.

Summary

PennyMac Mortgage Investment Trust beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.