Invesco Mortgage Capital (NYSE: IVR) is one of 35 public companies in the “Mortgage REITs” industry, but how does it contrast to its competitors? We will compare Invesco Mortgage Capital to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, earnings, valuation, dividends and risk.

Dividends

Invesco Mortgage Capital pays an annual dividend of $1.64 per share and has a dividend yield of 9.6%. Invesco Mortgage Capital pays out 43.9% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.3% and pay out 78.1% of their earnings in the form of a dividend.

Institutional & Insider Ownership

63.1% of Invesco Mortgage Capital shares are held by institutional investors. Comparatively, 57.0% of shares of all “Mortgage REITs” companies are held by institutional investors. 0.3% of Invesco Mortgage Capital shares are held by company insiders. Comparatively, 3.2% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Invesco Mortgage Capital and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Invesco Mortgage Capital $456.86 million $254.41 million 4.55
Invesco Mortgage Capital Competitors $383.25 million $201.70 million 0.16

Invesco Mortgage Capital has higher revenue and earnings than its competitors. Invesco Mortgage Capital is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Invesco Mortgage Capital and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco Mortgage Capital 0 2 2 0 2.50
Invesco Mortgage Capital Competitors 116 844 840 33 2.43

Invesco Mortgage Capital presently has a consensus target price of $17.75, suggesting a potential upside of 4.41%. As a group, “Mortgage REITs” companies have a potential upside of 6.49%. Given Invesco Mortgage Capital’s competitors higher possible upside, analysts plainly believe Invesco Mortgage Capital has less favorable growth aspects than its competitors.

Profitability

This table compares Invesco Mortgage Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco Mortgage Capital 71.92% 8.97% 1.11%
Invesco Mortgage Capital Competitors 48.54% 9.79% 2.53%

Volatility and Risk

Invesco Mortgage Capital has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Invesco Mortgage Capital’s competitors have a beta of 0.64, suggesting that their average stock price is 36% less volatile than the S&P 500.

Summary

Invesco Mortgage Capital beats its competitors on 9 of the 15 factors compared.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. is a holding company, which conducts its businesses through IAS Operating Partnership LP (the Operating Partnership) and subsidiaries. The Company’s objective is to provide risk-adjusted returns to its investors through dividends and through capital appreciation. It invests in residential mortgage-backed securities that are guaranteed by the United States Government agency, such as the Government National Mortgage Association or a federally chartered corporation, such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (collectively Agency RMBS); RMBS that are not guaranteed by the United States Government agency; Credit risk transfer securities that are unsecured obligations issued by government-sponsored enterprises; commercial mortgage-backed securities; residential and commercial mortgage loans, and other real estate-related financing arrangements. It is externally managed and advised by Invesco Advisers, Inc.

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