Head to Head Contrast: AGNC Investment (NASDAQ:AGNCM) vs. Chimera Investment (NYSE:CIM)

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

Analyst Ratings

This is a summary of recent recommendations and price targets for AGNC Investment and Chimera Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	N/A
Chimera Investment	0	1	0	0	2.00

Chimera Investment has a consensus price target of $5.50, indicating a potential upside of 38.54%. Given Chimera Investment’s higher possible upside, analysts clearly believe Chimera Investment is more favorable than AGNC Investment.

Valuation & Earnings

This table compares AGNC Investment and Chimera Investment’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$251.00 million	N/A	N/A	N/A	N/A
Chimera Investment	$772.90 million	1.24	$126.10 million	$0.23	17.26

Chimera Investment has higher revenue and earnings than AGNC Investment.

Insider and Institutional Ownership

48.4% of Chimera Investment shares are owned by institutional investors. 0.7% of Chimera Investment 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
Chimera Investment	16.32%	7.51%	1.44%

Dividends

AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 7.0%. Chimera Investment pays an annual dividend of $0.44 per share and has a dividend yield of 11.1%. Chimera Investment pays out 191.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Chimera Investment beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.