Anworth Mortgage Asset Corporation (NYSE: ANH) and American Tower Corp (NYSE:AMT) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Volatility and Risk
Anworth Mortgage Asset Corporation has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, American Tower Corp has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.
Institutional & Insider Ownership
56.2% of Anworth Mortgage Asset Corporation shares are held by institutional investors. Comparatively, 92.1% of American Tower Corp shares are held by institutional investors. 1.9% of Anworth Mortgage Asset Corporation shares are held by insiders. Comparatively, 0.9% of American Tower Corp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Anworth Mortgage Asset Corporation and American Tower Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Anworth Mortgage Asset Corporation||$83.05 million||7.14||$61.46 million||$0.63||9.65|
|American Tower Corp||$6.33 billion||9.91||$3.74 billion||$2.49||58.71|
American Tower Corp has higher revenue and earnings than Anworth Mortgage Asset Corporation. Anworth Mortgage Asset Corporation is trading at a lower price-to-earnings ratio than American Tower Corp, indicating that it is currently the more affordable of the two stocks.
Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 9.9%. American Tower Corp pays an annual dividend of $2.56 per share and has a dividend yield of 1.8%. Anworth Mortgage Asset Corporation pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Tower Corp pays out 102.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Anworth Mortgage Asset Corporation has raised its dividend for 5 consecutive years and American Tower Corp has raised its dividend for 2 consecutive years. Anworth Mortgage Asset Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Anworth Mortgage Asset Corporation and American Tower Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anworth Mortgage Asset Corporation||44.13%||8.83%||0.96%|
|American Tower Corp||23.37%||20.71%||4.85%|
This is a breakdown of current ratings for Anworth Mortgage Asset Corporation and American Tower Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anworth Mortgage Asset Corporation||0||1||0||0||2.00|
|American Tower Corp||0||0||11||0||3.00|
Anworth Mortgage Asset Corporation presently has a consensus price target of $6.00, suggesting a potential downside of 1.32%. American Tower Corp has a consensus price target of $145.09, suggesting a potential downside of 0.75%. Given American Tower Corp’s stronger consensus rating and higher probable upside, analysts clearly believe American Tower Corp is more favorable than Anworth Mortgage Asset Corporation.
American Tower Corp beats Anworth Mortgage Asset Corporation on 12 of the 17 factors compared between the two stocks.
About Anworth Mortgage Asset Corporation
Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.
About American Tower Corp
American Tower Corporation (ATC) is a holding company. The Company operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. ATC’s segments include U.S. property, Asia property, EMEA property, Latin America property, Services and Other. Its primary business is property operations, which include the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities, and tenants in various other industries. Its U.S. property segment includes operations in the United States. Its Asia property segment includes operations in India. The EMEA property segment includes operations in Germany, Ghana, Nigeria, South Africa and Uganda. The Latin America property segment includes operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. Its services segment offers tower-related services in the United States.
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