Comparing Brandywine Realty Trust (NYSE:BDN) and AGNC Investment (NASDAQ:AGNC)

AGNC Investment (NASDAQ:AGNC) and Brandywine Realty Trust (NYSE:BDN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Profitability

This table compares AGNC Investment and Brandywine Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	29.26%	21.92%	2.00%
Brandywine Realty Trust	-38.46%	-16.40%	-5.33%

Earnings & Valuation

This table compares AGNC Investment and Brandywine Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.95 billion	3.17	$863.00 million	$0.97	10.87
Brandywine Realty Trust	$505.52 million	1.65	-$194.44 million	($1.14)	-4.25

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

Analyst Recommendations

This is a breakdown of recent ratings for AGNC Investment and Brandywine Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	3	7	0	2.70
Brandywine Realty Trust	0	1	0	0	2.00

AGNC Investment currently has a consensus target price of $10.50, suggesting a potential downside of 0.38%. Brandywine Realty Trust has a consensus target price of $5.00, suggesting a potential upside of 3.20%. Given Brandywine Realty Trust’s higher probable upside, analysts clearly believe Brandywine Realty Trust is more favorable than AGNC Investment.

Insider & Institutional Ownership

38.3% of AGNC Investment shares are held by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are held by institutional investors. 0.5% of AGNC Investment shares are held by insiders. Comparatively, 2.6% of Brandywine Realty Trust shares are held by 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 and Risk

AGNC Investment has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Dividends

AGNC Investment pays an annual dividend of $1.44 per share and has a dividend yield of 13.7%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 12.4%. AGNC Investment pays out 148.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust pays out -52.6% of its earnings in the form of a dividend.

Summary

AGNC Investment beats Brandywine Realty Trust on 12 of the 16 factors compared between the two stocks.

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.