Critical Review: Hannon Armstrong Sustnbl Infrstr Cap (HASI) & PennyMac Mortgage Investment Trust (PMT)

Share on StockTwits

Hannon Armstrong Sustnbl Infrstr Cap (NYSE: HASI) and PennyMac Mortgage Investment Trust (NYSE:PMT) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Hannon Armstrong Sustnbl Infrstr Cap and PennyMac Mortgage Investment Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hannon Armstrong Sustnbl Infrstr Cap 0 1 8 0 2.89
PennyMac Mortgage Investment Trust 0 1 0 0 2.00

Hannon Armstrong Sustnbl Infrstr Cap currently has a consensus price target of $25.75, indicating a potential upside of 35.24%. PennyMac Mortgage Investment Trust has a consensus price target of $18.00, indicating a potential downside of 6.10%. Given Hannon Armstrong Sustnbl Infrstr Cap’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hannon Armstrong Sustnbl Infrstr Cap is more favorable than PennyMac Mortgage Investment Trust.

Dividends

Hannon Armstrong Sustnbl Infrstr Cap pays an annual dividend of $1.32 per share and has a dividend yield of 6.9%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 9.8%. Hannon Armstrong Sustnbl Infrstr Cap pays out 125.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust pays out 144.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustnbl Infrstr Cap has increased its dividend for 4 consecutive years.

Institutional & Insider Ownership

71.8% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by institutional investors. Comparatively, 70.7% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 5.3% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by insiders. Comparatively, 2.5% of PennyMac Mortgage Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Hannon Armstrong Sustnbl Infrstr Cap and PennyMac Mortgage Investment Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hannon Armstrong Sustnbl Infrstr Cap $105.57 million 9.60 $30.85 million $1.05 18.13
PennyMac Mortgage Investment Trust $317.94 million 3.67 $117.74 million $1.30 14.75

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

Risk & Volatility

Hannon Armstrong Sustnbl Infrstr Cap has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.

Profitability

This table compares Hannon Armstrong Sustnbl Infrstr Cap and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hannon Armstrong Sustnbl Infrstr Cap 20.45% 8.40% 2.40%
PennyMac Mortgage Investment Trust 33.00% 7.28% 1.65%

Summary

Hannon Armstrong Sustnbl Infrstr Cap beats PennyMac Mortgage Investment Trust on 12 of the 17 factors compared between the two stocks.

About Hannon Armstrong Sustnbl Infrstr Cap

Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through enhancing or installing various building components, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. Its projects also comprise renewable energy projects, which deploy cleaner energy sources, such as solar and wind to generate power production; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. 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. Hannon Armstrong Sustainable Infrastructure Capital, Inc. is headquartered in Annapolis, Maryland.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company's Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). Its Credit Sensitive Strategies segment invests in credit risk transfer agreements, distressed mortgage loans, real estate acquired in settlement of mortgage loans, non-Agency subordinated bonds, and small balance commercial real estate mortgage loans. 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; and the related interest rate hedging activities. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. 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. PennyMac Mortgage Investment Trust was founded in 2009 and is based in Westlake Village, California.

Receive News & Ratings for Hannon Armstrong Sustnbl Infrstr Cap Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hannon Armstrong Sustnbl Infrstr Cap and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply