Comparing Ventas (NYSE:VTR) and AG Mortgage Investment Trust (NYSE:MITT)

Ventas (NYSE:VTR) and AG Mortgage Investment Trust (NYSE:MITT) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Ventas and AG Mortgage Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ventas 1 11 2 0 2.07
AG Mortgage Investment Trust 0 0 0 0 N/A

Ventas presently has a consensus target price of $64.82, suggesting a potential downside of 5.27%. Given Ventas’ higher probable upside, equities analysts clearly believe Ventas is more favorable than AG Mortgage Investment Trust.

Risk & Volatility

Ventas has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

87.1% of Ventas shares are owned by institutional investors. Comparatively, 66.9% of AG Mortgage Investment Trust shares are owned by institutional investors. 1.4% of Ventas shares are owned by insiders. Comparatively, 1.4% of AG Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Ventas and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ventas 12.19% 4.04% 1.86%
AG Mortgage Investment Trust 14.17% 12.28% 1.77%

Earnings and Valuation

This table compares Ventas and AG Mortgage Investment Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ventas $3.75 billion 6.55 $409.46 million $4.07 16.81
AG Mortgage Investment Trust $156.48 million 3.37 $1.57 million N/A N/A

Ventas has higher revenue and earnings than AG Mortgage Investment Trust.

Dividends

Ventas pays an annual dividend of $3.17 per share and has a dividend yield of 4.6%. AG Mortgage Investment Trust pays an annual dividend of $2.00 per share and has a dividend yield of 12.4%. Ventas pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas has increased its dividend for 8 consecutive years.

Summary

Ventas beats AG Mortgage Investment Trust on 10 of the 15 factors compared between the two stocks.

About Ventas

Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,200 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. References to “Ventas” or the “Company” mean Ventas, Inc. and its consolidated subsidiaries unless otherwise expressly noted.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc., a real estate investment trust, focuses on investing in, acquiring, and managing a portfolio of residential mortgage-backed securities, other real estate-related securities, and financial assets in the United States. It operates through two segments, Securities and Loans, and Single-Family Rental Properties. The Securities and Loans segment invests in residential mortgage-backed securities; residential investments, including credit risk transfer securities, mortgage-backed securities collateralized by re-performing mortgage loans and/or non-performing mortgage loans, and new origination loans, as well as re-performing mortgage loans and/or non-performing mortgage loans; commercial investments, such as commercial mortgage-backed securities (CMBS), interest-only securities, and CMBS principal-only securities; and asset backed securities comprising investment grade and non-investment grade debt and equity tranches of securitizations collateralized by various asset classes. The Single-Family Rental Properties segment operates single-family rental properties, as well as provides property management services. Its portfolio includes 1,225 properties located in the Southeast United States. 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. The company was incorporated in 2011 and is based in New York, New York.

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