Comparing AGNC Investment (NASDAQ:AGNCM) and Chimera Investment (NYSE:CIM)

Chimera Investment (NYSE:CIM) and AGNC Investment (NASDAQ:AGNCM) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	16.32%	7.51%	1.44%
AGNC Investment	N/A	N/A	N/A

Institutional & Insider Ownership

48.4% of Chimera Investment shares are held by institutional investors. 0.7% of Chimera Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Chimera Investment and AGNC Investment’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$772.90 million	1.24	$126.10 million	$0.23	17.26
AGNC Investment	$251.00 million	N/A	N/A	N/A	N/A

Chimera Investment has higher revenue and earnings than AGNC Investment.

Dividends

Chimera Investment pays an annual dividend of $0.44 per share and has a dividend yield of 11.1%. AGNC Investment pays an annual dividend of $1.72 per share and has a dividend yield of 7.0%. Chimera Investment pays out 191.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations for Chimera Investment and AGNC Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	0	1	0	0	2.00
AGNC Investment	0	0	0	0	N/A

Chimera Investment currently has a consensus price target of $5.50, suggesting a potential upside of 38.54%. Given Chimera Investment’s higher probable upside, analysts clearly believe Chimera Investment is more favorable than AGNC Investment.

Summary

Chimera Investment beats AGNC Investment on 8 of the 9 factors compared between the two stocks.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. 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. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.