American Strategic Investment (NYSE:NYC – Get Free Report) and PennyMac Mortgage Investment Trust (NYSE:PMT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and recommmendations for American Strategic Investment and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Strategic Investment | 0 | 0 | 0 | 0 | 0.00 |
| PennyMac Mortgage Investment Trust | 0 | 2 | 3 | 0 | 2.60 |
PennyMac Mortgage Investment Trust has a consensus target price of $15.20, suggesting a potential upside of 5.81%. Given PennyMac Mortgage Investment Trust’s stronger consensus rating and higher possible upside, analysts clearly believe PennyMac Mortgage Investment Trust is more favorable than American Strategic Investment.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Strategic Investment | $62.06 million | 0.43 | -$105.92 million | ($85.54) | -0.12 |
| PennyMac Mortgage Investment Trust | $183.53 million | 6.80 | $160.98 million | $1.33 | 10.80 |
PennyMac Mortgage Investment Trust has higher revenue and earnings than American Strategic Investment. American Strategic Investment is trading at a lower price-to-earnings ratio than PennyMac Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
American Strategic Investment pays an annual dividend of $0.40 per share and has a dividend yield of 4.0%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 11.1%. American Strategic Investment pays out -0.5% of its earnings in the form of a dividend. PennyMac Mortgage Investment Trust pays out 120.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
48.0% of American Strategic Investment shares are owned by institutional investors. Comparatively, 67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 1.4% of American Strategic Investment shares are owned by company insiders. Comparatively, 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
American Strategic Investment has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Profitability
This table compares American Strategic Investment and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Strategic Investment | -334.85% | -17.68% | -4.58% |
| PennyMac Mortgage Investment Trust | 48.17% | 11.48% | 1.24% |
Summary
PennyMac Mortgage Investment Trust beats American Strategic Investment on 14 of the 16 factors compared between the two stocks.
About American Strategic Investment
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.
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