CTO Realty Growth (NYSE:CTO) & Dynex Capital (NYSE:DX) Financial Review

CTO Realty Growth (NYSE:CTOGet Free Report) and Dynex Capital (NYSE:DXGet Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Insider & Institutional Ownership

67.2% of CTO Realty Growth shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 5.3% of CTO Realty Growth shares are owned by insiders. Comparatively, 2.5% of Dynex Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.6%. Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 13.1%. CTO Realty Growth pays out 257.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CTO Realty Growth and Dynex Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CTO Realty Growth 17.10% 4.04% 1.92%
Dynex Capital 35.65% -2.24% -0.30%

Volatility and Risk

CTO Realty Growth has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CTO Realty Growth and Dynex Capital, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CTO Realty Growth 0 0 1 2 3.67
Dynex Capital 0 1 4 0 2.80

CTO Realty Growth presently has a consensus target price of $21.00, suggesting a potential upside of 4.57%. Dynex Capital has a consensus target price of $13.56, suggesting a potential downside of 0.97%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, equities analysts clearly believe CTO Realty Growth is more favorable than Dynex Capital.

Earnings & Valuation

This table compares CTO Realty Growth and Dynex Capital”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CTO Realty Growth $109.12 million 5.52 $5.53 million $0.59 34.04
Dynex Capital $150.40 million 7.22 $113.90 million $1.47 9.32

Dynex Capital has higher revenue and earnings than CTO Realty Growth. Dynex Capital is trading at a lower price-to-earnings ratio than CTO Realty Growth, indicating that it is currently the more affordable of the two stocks.

Summary

Dynex Capital beats CTO Realty Growth on 9 of the 17 factors compared between the two stocks.

About CTO Realty Growth

(Get Free Report)

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.

About Dynex Capital

(Get Free Report)

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.

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