Comparing Ellington Credit (EARN) & Its Peers

Ellington Credit (NYSE:EARN) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its peers? We will compare Ellington Credit to similar companies based on the strength of its dividends, valuation, analyst recommendations, institutional ownership, risk, earnings and profitability.

Dividends

Ellington Credit pays an annual dividend of $0.96 per share and has a dividend yield of 28.0%. Ellington Credit pays out -98.0% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 30.0% of their earnings in the form of a dividend. Ellington Credit is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Ellington Credit and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ellington Credit	-70.52%	N/A	N/A
Ellington Credit Competitors	318.34%	79.19%	3.72%

Valuation and Earnings

This table compares Ellington Credit and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ellington Credit	$51.80 million	-$38.85 million	-3.49
Ellington Credit Competitors	$2.38 billion	$398.52 million	17.69

Ellington Credit’s peers have higher revenue and earnings than Ellington Credit. Ellington Credit is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ellington Credit and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ellington Credit	0	0	1	0	3.00
Ellington Credit Competitors	5549	20118	22454	642	2.37

Ellington Credit presently has a consensus price target of $5.25, indicating a potential upside of 53.28%. As a group, “Capital Markets” companies have a potential upside of 22.90%. Given Ellington Credit’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ellington Credit is more favorable than its peers.

Institutional & Insider Ownership

20.4% of Ellington Credit shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 1.4% of Ellington Credit shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Ellington Credit has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Ellington Credit’s peers have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.

Summary

Ellington Credit peers beat Ellington Credit on 9 of the 15 factors compared.

About Ellington Credit

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.