PennyMac Mortgage Investment Trust (NYSE:PMT) & LXP Industrial Trust (NYSE:LXP) Head to Head Survey

PennyMac Mortgage Investment Trust (NYSE:PMT) and LXP Industrial Trust (NYSE:LXP) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Dividends

PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 12.1%. LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.9%. PennyMac Mortgage Investment Trust pays out 99.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 650.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust has increased its dividend for 4 consecutive years. PennyMac Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Comparatively, 2.0% of LXP Industrial Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares PennyMac Mortgage Investment Trust and LXP Industrial Trust’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$429.02 million	2.68	$199.65 million	$1.61	8.24
LXP Industrial Trust	$340.50 million	7.62	$30.38 million	$0.08	110.26

PennyMac Mortgage Investment Trust has higher revenue and earnings than LXP Industrial Trust. PennyMac Mortgage Investment Trust is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

PennyMac Mortgage Investment Trust has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares PennyMac Mortgage Investment Trust and LXP Industrial Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	46.54%	14.15%	1.45%
LXP Industrial Trust	8.92%	1.37%	0.76%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PennyMac Mortgage Investment Trust and LXP Industrial Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	0	3	2	0	2.40
LXP Industrial Trust	0	1	1	0	2.50

PennyMac Mortgage Investment Trust presently has a consensus target price of $14.58, indicating a potential upside of 9.86%. LXP Industrial Trust has a consensus target price of $11.00, indicating a potential upside of 24.79%. Given LXP Industrial Trust’s stronger consensus rating and higher probable upside, analysts plainly believe LXP Industrial Trust is more favorable than PennyMac Mortgage Investment Trust.

Summary

PennyMac Mortgage Investment Trust beats LXP Industrial Trust on 10 of the 17 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.