Financial Contrast: Ellington Credit (EARN) and Its Rivals

Ellington Credit (NYSE:EARN) is one of 1,743 public companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Ellington Credit to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

Insider & Institutional 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 insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ellington Credit and its rivals’ 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	318.28%	11.55%	3.69%

Dividends

Ellington Credit pays an annual dividend of $0.96 per share and has a dividend yield of 29.3%. 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 3.2% and pay out 29.2% of their earnings in the form of a dividend. Ellington Credit is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Ellington Credit	$51.80 million	-$38.85 million	-3.34
Ellington Credit Competitors	$2.23 billion	$398.65 million	16.66

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

Risk and Volatility

Ellington Credit has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Ellington Credit’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Ellington Credit and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ellington Credit	0	0	1	0	3.00
Ellington Credit Competitors	5561	20139	22479	642	2.37

Ellington Credit presently has a consensus price target of $5.25, indicating a potential upside of 60.35%. As a group, “Capital Markets” companies have a potential upside of 26.45%. Given Ellington Credit’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ellington Credit is more favorable than its rivals.

Summary

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

Ellington Credit Company Profile

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.