NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) and AG Mortgage Investment Trust (NYSE:MITT – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Volatility & Risk
NexPoint Real Estate Finance has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for NexPoint Real Estate Finance and AG Mortgage Investment Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexPoint Real Estate Finance | 0 | 3 | 0 | 0 | 2.00 |
| AG Mortgage Investment Trust | 0 | 3 | 4 | 0 | 2.57 |
Earnings & Valuation
This table compares NexPoint Real Estate Finance and AG Mortgage Investment Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexPoint Real Estate Finance | $72.51 million | 3.47 | $29.19 million | $2.81 | 5.05 |
| AG Mortgage Investment Trust | $408.49 million | 0.68 | $55.74 million | $0.93 | 9.44 |
AG Mortgage Investment Trust has higher revenue and earnings than NexPoint Real Estate Finance. NexPoint Real Estate Finance is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 14.1%. AG Mortgage Investment Trust pays an annual dividend of $0.92 per share and has a dividend yield of 10.5%. NexPoint Real Estate Finance pays out 71.2% of its earnings in the form of a dividend. AG Mortgage Investment Trust pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust has raised its dividend for 2 consecutive years. NexPoint Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares NexPoint Real Estate Finance and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexPoint Real Estate Finance | 102.28% | 17.52% | 1.14% |
| AG Mortgage Investment Trust | 11.03% | 13.88% | 0.59% |
Institutional & Insider Ownership
67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are owned by institutional investors. 55.7% of NexPoint Real Estate Finance shares are owned by insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
NexPoint Real Estate Finance beats AG Mortgage Investment Trust on 9 of the 17 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 AG Mortgage Investment Trust
AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.
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