AGNC Investment (NASDAQ:AGNC) and American Strategic Investment (NYSE:NYC) Critical Analysis

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

Institutional and Insider Ownership

38.3% of AGNC Investment shares are owned by institutional investors. Comparatively, 48.0% of American Strategic Investment shares are owned by institutional investors. 0.5% of AGNC Investment shares are owned by company insiders. Comparatively, 1.4% of American Strategic Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AGNC Investment and American Strategic Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGNC Investment 0 3 5 0 2.63
American Strategic Investment 0 1 0 0 2.00

AGNC Investment presently has a consensus target price of $9.88, indicating a potential upside of 0.25%. American Strategic Investment has a consensus target price of $8.00, indicating a potential downside of 10.61%. Given AGNC Investment’s stronger consensus rating and higher probable upside, equities analysts plainly believe AGNC Investment is more favorable than American Strategic Investment.

Profitability

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

Net Margins Return on Equity Return on Assets
AGNC Investment 32.12% 27.14% 2.54%
American Strategic Investment -162.43% -13.63% -4.88%

Volatility & Risk

AGNC Investment has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, American Strategic Investment has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500.

Valuation and Earnings

This table compares AGNC Investment and American Strategic Investment’s gross 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 3.51 $155.00 million $0.91 10.82
American Strategic Investment $62.71 million 0.37 -$105.92 million ($44.41) -0.20

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

Summary

AGNC Investment beats American Strategic Investment on 12 of the 14 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 American Strategic Investment

(Get Free Report)

American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.

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