TPG RE Finance Trust (NYSE:TRTX – Get Free Report) and AGNC Investment (NASDAQ:AGNCN – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Dividends
TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.9%. AGNC Investment pays an annual dividend of $1.75 per share and has a dividend yield of 6.8%. TPG RE Finance Trust pays out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
57.1% of TPG RE Finance Trust shares are held by institutional investors. 3.0% of TPG RE Finance 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| TPG RE Finance Trust | 17.03% | 6.85% | 1.66% |
| AGNC Investment | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent ratings and recommmendations for TPG RE Finance Trust and AGNC Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TPG RE Finance Trust | 0 | 2 | 4 | 0 | 2.67 |
| AGNC Investment | 0 | 0 | 0 | 0 | 0.00 |
TPG RE Finance Trust currently has a consensus price target of $10.00, indicating a potential upside of 24.15%. Given TPG RE Finance Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe TPG RE Finance Trust is more favorable than AGNC Investment.
Valuation & Earnings
This table compares TPG RE Finance Trust and AGNC Investment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TPG RE Finance Trust | $142.63 million | 4.34 | $60.32 million | $0.54 | 14.92 |
| AGNC Investment | $2.40 billion | N/A | N/A | N/A | N/A |
TPG RE Finance Trust has higher earnings, but lower revenue than AGNC Investment.
Summary
TPG RE Finance Trust beats AGNC Investment on 9 of the 11 factors compared between the two stocks.
About TPG RE Finance Trust
TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. 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. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.
About AGNC Investment
AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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 formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
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