Granite Point Mortgage Trust (GPMT) vs. MFA Financial (MFA) Financial Contrast

Granite Point Mortgage Trust (NYSE: GPMT) and MFA Financial (NYSE:MFA) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current recommendations and price targets for Granite Point Mortgage Trust and MFA Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Point Mortgage Trust 0 2 3 0 2.60
MFA Financial 0 4 1 0 2.20

Granite Point Mortgage Trust presently has a consensus target price of $19.50, suggesting a potential upside of 10.54%. MFA Financial has a consensus target price of $8.75, suggesting a potential upside of 9.24%. Given Granite Point Mortgage Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Granite Point Mortgage Trust is more favorable than MFA Financial.

Earnings & Valuation

This table compares Granite Point Mortgage Trust and MFA Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite Point Mortgage Trust N/A N/A N/A N/A N/A
MFA Financial $566.49 million 5.61 $312.66 million $0.73 10.97

MFA Financial has higher revenue and earnings than Granite Point Mortgage Trust.

Profitability

This table compares Granite Point Mortgage Trust and MFA Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Point Mortgage Trust 37.32% 5.54% 2.09%
MFA Financial 59.03% 9.33% 2.50%

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. MFA Financial pays an annual dividend of $0.80 per share and has a dividend yield of 10.0%. MFA Financial pays out 109.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

13.5% of Granite Point Mortgage Trust shares are owned by institutional investors. Comparatively, 80.7% of MFA Financial shares are owned by institutional investors. 0.9% of MFA Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

MFA Financial beats Granite Point Mortgage Trust on 7 of the 11 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc. is focused primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt, such as commercial real estate investments. The Company formed to continue and expand the commercial real estate lending business. The Company is a long-term, fundamental value-oriented investor. The Company constructs its own investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity and diversification available in the market. The Company provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing and a range of business plans including lease-up, renovation, repositioning and repurposing of the property. It generally targets the top 25-50, metropolitan statistical areas (MSA) in the United States.

About MFA Financial

MFA Financial, Inc. is engaged in the real estate finance business. The Company’s subsidiaries invest in residential mortgage assets, including Non-Agency mortgage-backed securities (MBS), Agency MBS, residential whole loans and credit risk transfer (CRT) securities. The Company’s Non-Agency MBS portfolio primarily consists of Legacy Non-Agency MBS and 3 Year Step-up securities. In addition to Non-Agency MBS investments, the Company invests in re-performing and non-performing residential whole loans through its interests in certain consolidated trusts. The mortgages collateralizing its Agency MBS portfolio are predominantly Hybrids, 15-year fixed-rate mortgages and adjustable-rate mortgages (ARMs).

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