Financial Analysis: PennyMac Mortgage Investment Trust (NYSE:PMT) vs. InterRent Real Estate Investment Trust (OTCMKTS:IIPZF)


InterRent Real Estate Investment Trust (OTCMKTS:IIPZFGet a rating) and Penny Mac Mortgage Investment Trust (New York Stock Exchange: PMTGet a rating) are both small cap finance companies, but which business is superior? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Dividends

InterRent Real Estate Investment Trust pays an annual dividend of $0.27 per share and has a dividend yield of 2.5%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 11.9%. InterRent Real Estate Investment Trust pays 13.4% of its profits in the form of a dividend. PennyMac Mortgage Investment Trust pays out -257.5% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. PennyMac Mortgage Investment Trust is clearly the best dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

70.8% of the shares of PennyMac Mortgage Investment Trust are held by institutional investors. 0.8% of the shares of PennyMac Mortgage Investment Trust are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of InterRent Real Estate Investment Trust and PennyMac Mortgage Investment Trust.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
InterRent Real Estate Investment Trust $147.71 million 10:44 am $294.97 million $2.01 5.45
PennyMac Mortgage Investment Trust $420.30 million 3.66 $56.85 million ($0.73) -21.62

InterRent Real Estate Investment Trust has higher income, but lower income than PennyMac Mortgage Investment Trust. PennyMac Mortgage Investment Trust trades at a lower price-to-earnings ratio than InterRent Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Notes

This is a breakdown of the current recommendations for InterRent Real Estate Investment Trust and PennyMac Mortgage Investment Trust, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
InterRent Real Estate Investment Trust 0 1 6 0 2.86
PennyMac Mortgage Investment Trust 0 2 5 0 2.71

InterRent Real Estate Investment Trust currently has a consensus price target of $18.64, suggesting a potential upside of 70.06%. PennyMac Mortgage Investment Trust has a consensus price target of $18.72, suggesting a potential upside of 18.62%. Considering the higher consensus rating of InterRent Real Estate Investment Trust and the higher possible upside, research analysts clearly believe that InterRent Real Estate Investment Trust is more favorable than PennyMac Mortgage Investment Trust.

Risk and Volatility

InterRent Real Estate Investment Trust has a beta of 0.43, meaning its stock price is 57% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of InterRent Real Estate Investment Trust and PennyMac Mortgage Investment Trust.

Net margins Return on equity return on assets
InterRent Real Estate Investment Trust 185.14% 15.40% 9.26%
PennyMac Mortgage Investment Trust -14.74% -2.37% -0.33%

Summary

InterRent Real Estate Investment Trust beats PennyMac Mortgage Investment Trust on 9 out of 15 factors compared between the two stocks.

Company Profile InterRent Real Estate Investment Trust (Get a rating)

InterRent REIT is a growth-oriented real estate investment trust committed to increasing unitholder value and creating growing and sustainable distribution through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily in markets that have shown stable vacancies, enough suites available to achieve the critical mass needed to implement an effective portfolio management structure and provide opportunities for acquisitions accretive. InterRent’s main objectives are to use the proven industry experience of the trustees, management and operational team to: (i) grow both funds from operations per unit and value net asset value per unit through investments in a diversified portfolio of multi-residential properties; (ii) provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii) maintain a conservative payout ratio and balance sheet.

Company Profile PennyMac Mortgage Investment Trust (Get a rating)

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in mortgage-related assets in the United States. The Company’s Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, distressed loans, real estate and subordinated non-agency bonds. Its Interest Rate Sensitive Strategies segment invests in mortgage servicing rights, excess servicing spreads and agency and senior non-agency mortgage-backed securities (MBS), as well as related interest rate hedging. The Company’s Correspondent Production segment is involved in the purchase, pooling and resale of newly originated prime residential loans directly or in the form of MBS. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The Company is considered a real estate investment trust for federal income tax purposes. It would generally not be subject to federal corporate income tax if it distributed at least 90% of its taxable income to its shareholders. PennyMac Mortgage Investment Trust was founded in 2009 and is headquartered in Westlake Village, California.



Receive daily news and reviews for InterRent Real Estate Investment Trust – Enter your email address below to receive a concise daily summary of the latest news and analyst notes for InterRent Real Estate Investment Trust and related companies with MarketBeat.com’s FREE daily email newsletter.

Comments are closed.