Reviewing Anworth Mortgage Asset Corporation (ANH) and American Tower Corporation (REIT) (AMT)

Anworth Mortgage Asset Corporation (NYSE: ANH) and American Tower Corporation (REIT) (NYSE:AMT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Anworth Mortgage Asset Corporation and American Tower Corporation (REIT)’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 Corporation (REIT) 18.58% 16.70% 3.74%

Institutional and Insider Ownership

56.2% of Anworth Mortgage Asset Corporation shares are owned by institutional investors. Comparatively, 92.1% of American Tower Corporation (REIT) shares are owned by institutional investors. 1.9% of Anworth Mortgage Asset Corporation shares are owned by company insiders. Comparatively, 0.9% of American Tower Corporation (REIT) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & 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 Corporation (REIT) has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Anworth Mortgage Asset Corporation and American Tower Corporation (REIT), as reported 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 Corporation (REIT) 0 0 11 0 3.00

Anworth Mortgage Asset Corporation presently has a consensus target price of $6.00, indicating a potential upside of 0.17%. American Tower Corporation (REIT) has a consensus target price of $144.36, indicating a potential downside of 0.43%. Given Anworth Mortgage Asset Corporation’s higher possible upside, analysts clearly believe Anworth Mortgage Asset Corporation is more favorable than American Tower Corporation (REIT).

Valuation and Earnings

This table compares Anworth Mortgage Asset Corporation and American Tower Corporation (REIT)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Anworth Mortgage Asset Corporation $83.05 million 7.04 $61.46 million $0.63 9.51
American Tower Corporation (REIT) $6.33 billion 9.83 $3.74 billion $2.49 58.23

American Tower Corporation (REIT) 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 Corporation (REIT), indicating that it is currently the more affordable of the two stocks.

Dividends

Anworth Mortgage Asset Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 10.0%. American Tower Corporation (REIT) 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 Corporation (REIT) 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 Corporation (REIT) 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.

Summary

American Tower Corporation (REIT) beats Anworth Mortgage Asset Corporation on 11 of the 17 factors compared between the two stocks.

Anworth Mortgage Asset Corporation Company Profile

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.

American Tower Corporation (REIT) Company Profile

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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