Contrasting Dynex Capital (DX) and Its Rivals

Dynex Capital (NYSE: DX) is one of 37 public companies in the “Mortgage REITs” industry, but how does it weigh in compared to its competitors? We will compare Dynex Capital to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Dividends

Dynex Capital pays an annual dividend of $0.72 per share and has a dividend yield of 9.8%. Dynex Capital pays out 46.8% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend.

Profitability

This table compares Dynex Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynex Capital 93.54% 11.04% 1.25%
Dynex Capital Competitors 49.98% 10.38% 2.69%

Insider & Institutional Ownership

44.4% of Dynex Capital shares are held by institutional investors. Comparatively, 57.8% of shares of all “Mortgage REITs” companies are held by institutional investors. 7.1% of Dynex Capital shares are held by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dynex Capital and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Dynex Capital $105.39 million N/A 4.77
Dynex Capital Competitors $626.30 million $243.53 million 1.47

Dynex Capital’s competitors have higher revenue and earnings than Dynex Capital. Dynex Capital is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Dynex Capital has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Dynex Capital’s competitors have a beta of 0.71, indicating that their average stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Dynex Capital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynex Capital 0 2 1 0 2.33
Dynex Capital Competitors 114 843 842 31 2.43

Dynex Capital currently has a consensus price target of $7.38, indicating a potential upside of 0.48%. As a group, “Mortgage REITs” companies have a potential upside of 2.12%. Given Dynex Capital’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Dynex Capital has less favorable growth aspects than its competitors.

Summary

Dynex Capital competitors beat Dynex Capital on 8 of the 14 factors compared.

Dynex Capital Company Profile

Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage securities on a leveraged basis. The Company’s objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. It seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. It invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consists of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac.

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