Financial Review: AGNC Investment (NASDAQ:AGNC) and Veris Residential (NYSE:VRE)

AGNC Investment (NASDAQ:AGNCGet Free Report) and Veris Residential (NYSE:VREGet Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Insider and Institutional Ownership

38.9% of AGNC Investment shares are held by institutional investors. Comparatively, 86.9% of Veris Residential shares are held by institutional investors. 0.5% of AGNC Investment shares are held by company insiders. Comparatively, 15.0% of Veris Residential shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AGNC Investment and Veris Residential, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGNC Investment 0 2 3 0 2.60
Veris Residential 0 1 2 0 2.67

AGNC Investment currently has a consensus price target of $9.92, suggesting a potential upside of 3.95%. Veris Residential has a consensus price target of $17.67, suggesting a potential upside of 15.54%. Given Veris Residential’s stronger consensus rating and higher probable upside, analysts plainly believe Veris Residential is more favorable than AGNC Investment.

Dividends

AGNC Investment pays an annual dividend of $1.44 per share and has a dividend yield of 15.1%. Veris Residential pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. AGNC Investment pays out 14,414.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential pays out -25.6% of its earnings in the form of a dividend.

Risk and Volatility

AGNC Investment has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares AGNC Investment and Veris Residential’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AGNC Investment $2.04 billion 3.14 $155.00 million $0.01 954.95
Veris Residential $355.02 million 3.97 -$52.07 million ($0.82) -18.65

AGNC Investment has higher revenue and earnings than Veris Residential. Veris Residential is trading at a lower price-to-earnings ratio than AGNC Investment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AGNC Investment and Veris Residential’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AGNC Investment 7.59% 28.65% 2.65%
Veris Residential -23.98% -5.39% -1.97%

Summary

AGNC Investment beats Veris Residential on 10 of the 16 factors compared between the two stocks.

About AGNC Investment

(Get Free Report)

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).

About Veris Residential

(Get Free Report)

Veris Residential, Inc. is a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today's residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment.

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