Critical Analysis: Equity Commonwealth (NYSE:EQC) vs. AG Mortgage Investment Trust (NYSE:MITT)

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

Risk and Volatility

Equity Commonwealth has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Equity Commonwealth shares are owned by institutional investors. Comparatively, 31.3% of AG Mortgage Investment Trust shares are owned by institutional investors. 1.6% of Equity Commonwealth shares are owned by company insiders. Comparatively, 2.0% of AG Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Equity Commonwealth and AG Mortgage Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Commonwealth 0 1 0 0 2.00
AG Mortgage Investment Trust 2 1 0 0 1.33

Equity Commonwealth presently has a consensus target price of $33.00, suggesting a potential upside of 16.73%. AG Mortgage Investment Trust has a consensus target price of $2.75, suggesting a potential downside of 31.93%. Given Equity Commonwealth’s stronger consensus rating and higher possible upside, equities analysts clearly believe Equity Commonwealth is more favorable than AG Mortgage Investment Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
Equity Commonwealth 604.59% 14.07% 12.97%
AG Mortgage Investment Trust -381.52% -86.32% -9.62%

Valuation and Earnings

This table compares Equity Commonwealth and AG Mortgage Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Commonwealth $127.85 million 26.90 $492.68 million $0.78 36.24
AG Mortgage Investment Trust $171.66 million 0.98 $92.92 million N/A N/A

Equity Commonwealth has higher earnings, but lower revenue than AG Mortgage Investment Trust.

Summary

Equity Commonwealth beats AG Mortgage Investment Trust on 9 of the 12 factors compared between the two stocks.

Equity Commonwealth Company Profile

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's same property portfolio is comprised of 4 properties and 1.5 million square feet.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc., a real estate investment trust, invests in a portfolio of residential mortgage-backed securities and credit investments in the United States. Its investment portfolio includes residential investments, including re/non-performing loans, non-qualifying mortgages loans, and land related financing; and commercial investments, such as commercial mortgage-backed securities (CMBS), interest only securities, and CMBS interest-only and principal-only securities, as well as commercial real estate loans secured by commercial real property, including mortgages and mezzanine loans for construction or redevelopment of a properties. 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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