Head-To-Head Survey: New York Mortgage Trust (NYMT) & Dynex Capital (DX)
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.
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.
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%|
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.
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|
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.
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.
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