MTGE Investment (MTGE) and First Industrial Realty Trust (FR) Critical Review

MTGE Investment (NASDAQ: MTGE) and First Industrial Realty Trust (NYSE:FR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Institutional & Insider Ownership

69.7% of MTGE Investment shares are held by institutional investors. Comparatively, 90.8% of First Industrial Realty Trust shares are held by institutional investors. 1.1% of MTGE Investment shares are held by company insiders. Comparatively, 1.7% of First Industrial Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

MTGE Investment has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for MTGE Investment and First Industrial Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTGE Investment 0 2 0 0 2.00
First Industrial Realty Trust 1 2 5 0 2.50

MTGE Investment presently has a consensus price target of $19.88, indicating a potential downside of 0.13%. First Industrial Realty Trust has a consensus price target of $32.86, indicating a potential upside of 2.33%. Given First Industrial Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe First Industrial Realty Trust is more favorable than MTGE Investment.

Profitability

This table compares MTGE Investment and First Industrial Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTGE Investment 112.26% 10.30% 1.62%
First Industrial Realty Trust 53.92% 15.01% 7.30%

Dividends

MTGE Investment pays an annual dividend of $2.00 per share and has a dividend yield of 10.1%. First Industrial Realty Trust pays an annual dividend of $0.87 per share and has a dividend yield of 2.7%. First Industrial Realty Trust pays out 55.4% of its earnings in the form of a dividend. First Industrial Realty Trust has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares MTGE Investment and First Industrial Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTGE Investment $91.12 million 10.00 $161.32 million N/A N/A
First Industrial Realty Trust $396.40 million 10.15 $201.45 million $1.57 20.45

First Industrial Realty Trust has higher revenue and earnings than MTGE Investment.

Summary

First Industrial Realty Trust beats MTGE Investment on 13 of the 16 factors compared between the two stocks.

About MTGE Investment

MTGE Investment Corp., formerly American Capital Mortgage Investment Corp., is a real estate investment trust. The Company invests in, finances and manages a leveraged portfolio of real estate-related investments, which include agency residential mortgage-backed securities (RMBS), non-agency securities, other mortgage-related investments and other real estate investments. Agency RMBS includes residential mortgage pass-through certificates and collateralized mortgage obligations (CMOs) structured from residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a government-sponsored enterprise (GSE), or by a United States Government agency, such as Government National Mortgage Association (Ginnie Mae). Non-agency securities include securities backed by residential mortgages that are not guaranteed by a GSE or the United States Government agency, and credit risk transfer securities (CRT). The Company’s manager is MTGE Management, LLC.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading fully integrated owner, operator, and developer of industrial real estate with a track record of providing industry-leading customer service to multinational corporations and regional customers. Across major markets in the United States, our local market experts manage, lease, buy, (re)develop, and sell bulk and regional distribution centers, light industrial, and other industrial facility types. In total, we own and have under development approximately 64.3 million square feet of industrial space as of March 31, 2018. For more information, please visit us at www.firstindustrial.com.

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