Critical Comparison: AGNC Investment (NASDAQ:AGNCP) vs. Rithm Capital (NYSE:RITM)

Rithm Capital (NYSE:RITM) and AGNC Investment (NASDAQ:AGNCP) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Dividends

Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 8.4%. AGNC Investment pays an annual dividend of $1.53 per share and has a dividend yield of 6.3%. Rithm Capital pays out 66.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rithm Capital and AGNC Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	9	0	2.90
AGNC Investment	0	0	0	0	N/A

Rithm Capital currently has a consensus target price of $12.55, indicating a potential upside of 6.00%. Given Rithm Capital’s higher probable upside, analysts clearly believe Rithm Capital is more favorable than AGNC Investment.

Valuation & Earnings

This table compares Rithm Capital and AGNC Investment’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$2.44 billion	2.34	$622.26 million	$1.50	7.89
AGNC Investment	$514.00 million	N/A	N/A	N/A	N/A

Rithm Capital has higher revenue and earnings than AGNC Investment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	15.55%	18.20%	2.89%
AGNC Investment	N/A	N/A	N/A

Insider & Institutional Ownership

44.9% of Rithm Capital shares are owned by institutional investors. 0.4% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Rithm Capital beats AGNC Investment on 9 of the 10 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based 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.