Ellington Credit (NYSE:EARN – Get Free Report) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its competitors? We will compare Ellington Credit to related businesses based on the strength of its dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Dividends
Ellington Credit pays an annual dividend of $0.96 per share and has a dividend yield of 28.0%. Ellington Credit pays out -98.0% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.1% and pay out 30.0% of their earnings in the form of a dividend. Ellington Credit is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Volatility and Risk
Ellington Credit has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Ellington Credit’s competitors have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.
Profitability
This table compares Ellington Credit and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ellington Credit | -70.52% | N/A | N/A |
| Ellington Credit Competitors | 318.34% | 79.19% | 3.72% |
Valuation and Earnings
This table compares Ellington Credit and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Ellington Credit | $51.80 million | -$38.85 million | -3.49 |
| Ellington Credit Competitors | $2.38 billion | $398.52 million | 17.69 |
Ellington Credit’s competitors have higher revenue and earnings than Ellington Credit. Ellington Credit is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Ellington Credit and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ellington Credit | 0 | 0 | 1 | 0 | 3.00 |
| Ellington Credit Competitors | 5549 | 20118 | 22454 | 642 | 2.37 |
Ellington Credit presently has a consensus target price of $5.25, suggesting a potential upside of 53.28%. As a group, “Capital Markets” companies have a potential upside of 22.90%. Given Ellington Credit’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ellington Credit is more favorable than its competitors.
Insider & Institutional Ownership
20.4% of Ellington Credit shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 1.4% of Ellington Credit shares are owned by insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Ellington Credit competitors beat Ellington Credit on 9 of the 15 factors compared.
About Ellington Credit
Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.
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