Financial Analysis: Healthpeak Properties (NYSE:DOC) versus AG Mortgage Investment Trust (NYSE:MITT)

Healthpeak Properties (NYSE:DOC) and AG Mortgage Investment Trust (NYSE:MITT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk & Volatility

Healthpeak Properties has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Insider & Institutional Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are held by institutional investors. 0.3% of Healthpeak Properties shares are held by company insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Healthpeak Properties and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	8.56%	2.54%	1.15%
AG Mortgage Investment Trust	20.84%	10.05%	0.50%

Dividends

Healthpeak Properties pays an annual dividend of $1.20 per share and has a dividend yield of 6.2%. AG Mortgage Investment Trust pays an annual dividend of $0.72 per share and has a dividend yield of 10.5%. Healthpeak Properties pays out 342.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AG Mortgage Investment Trust pays out 41.4% of its earnings in the form of a dividend. AG Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Healthpeak Properties and AG Mortgage Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	6	7	1	2.64
AG Mortgage Investment Trust	0	1	3	0	2.75

Healthpeak Properties presently has a consensus price target of $19.41, indicating a potential downside of 0.36%. AG Mortgage Investment Trust has a consensus price target of $7.50, indicating a potential upside of 9.49%. Given AG Mortgage Investment Trust’s stronger consensus rating and higher probable upside, analysts clearly believe AG Mortgage Investment Trust is more favorable than Healthpeak Properties.

Earnings & Valuation

This table compares Healthpeak Properties and AG Mortgage Investment Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.18 billion	6.29	$306.01 million	$0.35	55.66
AG Mortgage Investment Trust	$260.33 million	0.78	$53.78 million	$1.74	3.94

Healthpeak Properties has higher revenue and earnings than AG Mortgage Investment Trust. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Summary

AG Mortgage Investment Trust beats Healthpeak Properties on 9 of the 17 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. 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 stockholders. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based in New York, New York.