AGNC Investment (NASDAQ:AGNCO) vs. NexPoint Real Estate Finance (NYSE:NREF) Head to Head Review

NexPoint Real Estate Finance (NYSE:NREF) and AGNC Investment (NASDAQ:AGNCO) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Profitability

This table compares NexPoint Real Estate Finance and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexPoint Real Estate Finance	107.93%	12.68%	0.92%
AGNC Investment	N/A	N/A	N/A

Dividends

NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 11.0%. AGNC Investment pays an annual dividend of $1.63 per share and has a dividend yield of 6.4%. NexPoint Real Estate Finance pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares NexPoint Real Estate Finance and AGNC Investment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexPoint Real Estate Finance	$169.42 million	2.03	$105.10 million	$2.37	7.69
AGNC Investment	$2.40 billion	N/A	N/A	N/A	N/A

NexPoint Real Estate Finance has higher earnings, but lower revenue than AGNC Investment.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Real Estate Finance	0	4	0	0	2.00
AGNC Investment	0	0	0	0	0.00

NexPoint Real Estate Finance currently has a consensus price target of $16.25, indicating a potential downside of 10.86%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher possible upside, analysts clearly believe NexPoint Real Estate Finance is more favorable than AGNC Investment.

Insider & Institutional Ownership

67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. 59.9% of NexPoint Real Estate Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

NexPoint Real Estate Finance beats AGNC Investment on 8 of the 10 factors compared between the two stocks.

About NexPoint Real Estate Finance

NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.

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.