Analyzing RiverNorth Opportunistic Municipal Income Fund (NYSE:RMI) & Federal Agricultural Mortgage (NYSE:AGM)

Federal Agricultural Mortgage (NYSE:AGM) and RiverNorth Opportunistic Municipal Income Fund (NYSE:RMI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Insider & Institutional Ownership

68.0% of Federal Agricultural Mortgage shares are owned by institutional investors. 1.9% of Federal Agricultural Mortgage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Federal Agricultural Mortgage pays an annual dividend of $6.40 per share and has a dividend yield of 2.9%. RiverNorth Opportunistic Municipal Income Fund pays an annual dividend of $0.37 per share and has a dividend yield of 2.4%. Federal Agricultural Mortgage pays out 35.0% of its earnings in the form of a dividend. Federal Agricultural Mortgage has raised its dividend for 14 consecutive years. Federal Agricultural Mortgage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Federal Agricultural Mortgage and RiverNorth Opportunistic Municipal Income Fund, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Agricultural Mortgage	0	1	1	1	3.00
RiverNorth Opportunistic Municipal Income Fund	0	0	0	0	0.00

Federal Agricultural Mortgage currently has a consensus target price of $255.00, indicating a potential upside of 15.97%. Given Federal Agricultural Mortgage’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Federal Agricultural Mortgage is more favorable than RiverNorth Opportunistic Municipal Income Fund.

Profitability

This table compares Federal Agricultural Mortgage and RiverNorth Opportunistic Municipal Income Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Agricultural Mortgage	29.98%	18.90%	0.63%
RiverNorth Opportunistic Municipal Income Fund	N/A	N/A	N/A

Valuation and Earnings

This table compares Federal Agricultural Mortgage and RiverNorth Opportunistic Municipal Income Fund”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Agricultural Mortgage	$410.30 million	5.81	$207.41 million	$18.31	12.01
RiverNorth Opportunistic Municipal Income Fund	$1.95 million	N/A	N/A	N/A	N/A

Federal Agricultural Mortgage has higher revenue and earnings than RiverNorth Opportunistic Municipal Income Fund.

Summary

Federal Agricultural Mortgage beats RiverNorth Opportunistic Municipal Income Fund on 12 of the 13 factors compared between the two stocks.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.

About RiverNorth Opportunistic Municipal Income Fund

The RiverNorth Opportunistic Municipal Income Fund, Inc. (the “Fund”) seeks to provide current income exempt from regular U.S. federal income taxes1 with a secondary objective of total return.