Head to Head Comparison: AGNC Investment (NASDAQ:AGNCZ) vs. Apollo Commercial Real Estate Finance (NYSE:ARI)

Apollo Commercial Real Estate Finance (NYSE:ARI) and AGNC Investment (NASDAQ:AGNCZ) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 0.7% of Apollo Commercial Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Apollo Commercial Real Estate Finance and AGNC Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apollo Commercial Real Estate Finance	46.66%	7.94%	1.55%
AGNC Investment	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Apollo Commercial Real Estate Finance and AGNC Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apollo Commercial Real Estate Finance	1	3	3	0	2.29
AGNC Investment	0	0	0	0	0.00

Apollo Commercial Real Estate Finance presently has a consensus price target of $11.00, indicating a potential upside of 3.43%. Given Apollo Commercial Real Estate Finance’s stronger consensus rating and higher probable upside, research analysts plainly believe Apollo Commercial Real Estate Finance is more favorable than AGNC Investment.

Valuation and Earnings

This table compares Apollo Commercial Real Estate Finance and AGNC Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apollo Commercial Real Estate Finance	$271.59 million	5.47	$126.72 million	$0.80	13.29
AGNC Investment	$1.80 billion	N/A	N/A	N/A	N/A

Apollo Commercial Real Estate Finance has higher earnings, but lower revenue than AGNC Investment.

Summary

Apollo Commercial Real Estate Finance beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.