Dynex Capital (NYSE:DX – Get Free Report) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Risk and Volatility
Dynex Capital has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, InterRent Real Estate Investment Trust has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Dynex Capital and InterRent Real Estate Investment Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dynex Capital | 0 | 1 | 4 | 0 | 2.80 |
| InterRent Real Estate Investment Trust | 0 | 0 | 0 | 3 | 4.00 |
Valuation and Earnings
This table compares Dynex Capital and InterRent Real Estate Investment Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dynex Capital | $123.18 million | 8.16 | -$6.13 million | $1.26 | 10.06 |
| InterRent Real Estate Investment Trust | $175.65 million | 5.98 | $68.33 million | ($0.11) | -64.64 |
InterRent Real Estate Investment Trust has higher revenue and earnings than Dynex Capital. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.
Dividends
Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 14.2%. InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 4.1%. Dynex Capital pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InterRent Real Estate Investment Trust pays out -263.6% of its earnings in the form of a dividend.
Institutional & Insider Ownership
38.3% of Dynex Capital shares are held by institutional investors. 2.5% of Dynex Capital shares are held by insiders. Comparatively, 6.8% of InterRent Real Estate Investment Trust 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.
Profitability
This table compares Dynex Capital and InterRent Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dynex Capital | 28.83% | -4.80% | -0.63% |
| InterRent Real Estate Investment Trust | -8.47% | -0.81% | -0.47% |
Summary
Dynex Capital beats InterRent Real Estate Investment Trust on 9 of the 17 factors compared between the two stocks.
About Dynex Capital
Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.
About InterRent Real Estate Investment Trust
InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.
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