AG Mortgage Investment Trust (NYSE:MITT – Get Free Report) and National Health Investors (NYSE:NHI – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Risk & Volatility
AG Mortgage Investment Trust has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, National Health Investors has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Dividends
AG Mortgage Investment Trust pays an annual dividend of $0.76 per share and has a dividend yield of 10.2%. National Health Investors pays an annual dividend of $3.60 per share and has a dividend yield of 4.9%. AG Mortgage Investment Trust pays out 61.8% of its earnings in the form of a dividend. National Health Investors pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AG Mortgage Investment Trust | 0 | 1 | 4 | 0 | 2.80 |
National Health Investors | 0 | 2 | 3 | 0 | 2.60 |
AG Mortgage Investment Trust presently has a consensus price target of $8.30, indicating a potential upside of 11.63%. National Health Investors has a consensus price target of $76.60, indicating a potential upside of 3.21%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe AG Mortgage Investment Trust is more favorable than National Health Investors.
Institutional and Insider Ownership
27.3% of AG Mortgage Investment Trust shares are held by institutional investors. Comparatively, 62.5% of National Health Investors shares are held by institutional investors. 3.2% of AG Mortgage Investment Trust shares are held by company insiders. Comparatively, 7.3% of National Health Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares AG Mortgage Investment Trust and National Health Investors’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AG Mortgage Investment Trust | 20.19% | 9.70% | 0.46% |
National Health Investors | 38.53% | 10.11% | 5.12% |
Earnings and Valuation
This table compares AG Mortgage Investment Trust and National Health Investors”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AG Mortgage Investment Trust | $75.32 million | 2.93 | $53.78 million | $1.23 | 6.04 |
National Health Investors | $335.18 million | 10.12 | $135.65 million | $3.12 | 23.79 |
National Health Investors has higher revenue and earnings than AG Mortgage Investment Trust. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.
Summary
National Health Investors beats AG Mortgage Investment Trust on 10 of the 16 factors compared between the two stocks.
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.
About National Health Investors
Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.
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