Arbor Realty Trust (NYSE:ABR) vs. AGNC Investment (NASDAQ:AGNCZ) Critical Analysis

AGNC Investment (NASDAQ:AGNCZ) and Arbor Realty Trust (NYSE:ABR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for AGNC Investment and Arbor Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	0.00
Arbor Realty Trust	4	1	1	0	1.50

Arbor Realty Trust has a consensus target price of $6.00, suggesting a potential upside of 17.30%. Given Arbor Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Arbor Realty Trust is more favorable than AGNC Investment.

Insider & Institutional Ownership

57.3% of Arbor Realty Trust shares are held by institutional investors. 4.2% of Arbor Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AGNC Investment and Arbor Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A
Arbor Realty Trust	$940.01 million	1.02	$148.80 million	$0.07	73.07

Arbor Realty Trust has lower revenue, but higher earnings than AGNC Investment.

Profitability

This table compares AGNC Investment and Arbor Realty Trust’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
Arbor Realty Trust	6.24%	7.38%	1.22%

Summary

Arbor Realty Trust beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. 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. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.