New York Mortgage Trust (NASDAQ: NYMT) and Dynex Capital (NYSE:DX) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.

Dividends

New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 12.5%. Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 10.0%. New York Mortgage Trust pays out 148.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital pays out 50.0% of its earnings in the form of a dividend.

Profitability

This table compares New York Mortgage Trust and Dynex Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New York Mortgage Trust 20.23% 10.78% 0.74%
Dynex Capital 86.86% 11.08% 1.27%

Valuation & Earnings

This table compares New York Mortgage Trust and Dynex Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New York Mortgage Trust $319.31 million 2.25 $67.55 million $0.54 11.87
Dynex Capital $91.90 million 4.16 $43.09 million $1.44 4.99

New York Mortgage Trust has higher revenue and earnings than Dynex Capital. Dynex Capital is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

New York Mortgage Trust has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for New York Mortgage Trust and Dynex Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New York Mortgage Trust 0 4 1 0 2.20
Dynex Capital 0 2 1 0 2.33

New York Mortgage Trust currently has a consensus price target of $6.19, suggesting a potential downside of 3.47%. Dynex Capital has a consensus price target of $7.38, suggesting a potential upside of 2.72%. Given Dynex Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Dynex Capital is more favorable than New York Mortgage Trust.

Institutional and Insider Ownership

37.8% of New York Mortgage Trust shares are held by institutional investors. Comparatively, 44.7% of Dynex Capital shares are held by institutional investors. 1.3% of New York Mortgage Trust shares are held by insiders. Comparatively, 7.1% of Dynex Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Dynex Capital beats New York Mortgage Trust on 10 of the 15 factors compared between the two stocks.

New York Mortgage Trust Company Profile

New York Mortgage Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. The Company’s investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets, non-agency residential mortgage-backed securities (RMBS), multi-family commercial mortgage-backed securities, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate and agency RMBS. It may acquire and manage various other types of mortgage-related and financial assets, including, without limitation, collateralized mortgage obligations and securities issued by newly originated residential securitizations, including credit sensitive securities from these securitizations.

Dynex Capital Company Profile

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage securities on a leveraged basis. The Company’s objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. It invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consists of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac.

Receive News & Ratings for New York Mortgage Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for New York Mortgage Trust and related companies with MarketBeat.com's FREE daily email newsletter.