Head-To-Head Review: Great Ajax Corp. (AJX) & Its Rivals

Great Ajax Corp. (NYSE: AJX) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it contrast to its rivals? We will compare Great Ajax Corp. to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, risk, dividends, profitability and earnings.

Dividends

Great Ajax Corp. pays an annual dividend of $1.20 per share and has a dividend yield of 8.4%. Great Ajax Corp. pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings for Great Ajax Corp. and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Ajax Corp. 0 3 2 0 2.40
Great Ajax Corp. Competitors 201 1044 922 44 2.37

Great Ajax Corp. currently has a consensus price target of $15.20, suggesting a potential upside of 6.97%. As a group, “Mortgage REITs” companies have a potential upside of 2.05%. Given Great Ajax Corp.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Great Ajax Corp. is more favorable than its rivals.

Risk and Volatility

Great Ajax Corp. has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Great Ajax Corp.’s rivals have a beta of 0.71, meaning that their average stock price is 29% less volatile than the S&P 500.

Profitability

This table compares Great Ajax Corp. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Ajax Corp. 58.46% 10.22% 3.02%
Great Ajax Corp. Competitors 49.20% 10.70% 2.78%

Earnings and Valuation

This table compares Great Ajax Corp. and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Great Ajax Corp. $50.65 million N/A 9.05
Great Ajax Corp. Competitors $626.30 million $243.53 million 1.57

Great Ajax Corp.’s rivals have higher revenue and earnings than Great Ajax Corp.. Great Ajax Corp. is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

75.3% of Great Ajax Corp. shares are held by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are held by institutional investors. 3.8% of Great Ajax Corp. shares are held by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Great Ajax Corp. beats its rivals on 9 of the 14 factors compared.

Great Ajax Corp. Company Profile

Great Ajax Corp. is an externally managed real estate company. The Company is focused on acquiring, investing in and managing a portfolio of re-performing and non-performing mortgage loans secured by single-family residences and single-family properties. Its segment is focused on non-performing mortgages and re-performing mortgages. It also invests in loans secured by multi-family residential and commercial mixed use retail/residential properties, as well as in the properties directly. It also holds real estate-owned properties (REO) acquired upon the foreclosure or other settlement of its owned non-performing loans, as well as through outright purchases. It is managed by Thetis Asset Management LLC, an affiliated entity. Its mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. The Company conducts its business through its operating partnership, Great Ajax Operating Partnership L.P.

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