Orchid Island Capital (NYSE:ORC – Get Free Report) and Regency Centers (NASDAQ:REG – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Dividends
Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 18.2%. Regency Centers pays an annual dividend of $2.82 per share and has a dividend yield of 3.9%. Orchid Island Capital pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers pays out 132.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Orchid Island Capital and Regency Centers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orchid Island Capital | 0 | 1 | 1 | 0 | 2.50 |
| Regency Centers | 0 | 3 | 8 | 1 | 2.83 |
Institutional and Insider Ownership
32.7% of Orchid Island Capital shares are held by institutional investors. Comparatively, 96.1% of Regency Centers shares are held by institutional investors. 0.6% of Orchid Island Capital shares are held by company insiders. Comparatively, 1.0% of Regency Centers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Orchid Island Capital and Regency Centers”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orchid Island Capital | $177.57 million | 3.56 | -$39.23 million | $1.05 | 7.54 |
| Regency Centers | $1.32 billion | 10.03 | $364.56 million | $2.13 | 34.31 |
Regency Centers has higher revenue and earnings than Orchid Island Capital. Orchid Island Capital is trading at a lower price-to-earnings ratio than Regency Centers, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Orchid Island Capital has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Regency Centers has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Profitability
This table compares Orchid Island Capital and Regency Centers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orchid Island Capital | N/A | -4.08% | -0.46% |
| Regency Centers | 27.78% | 5.85% | 3.21% |
Summary
Regency Centers beats Orchid Island Capital on 14 of the 17 factors compared between the two stocks.
About Orchid Island Capital
Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.
About Regency Centers
Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.
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