AGNC vs EARN

For growth investors, AGNC Investment Corp.

(AGNC) is the stronger pick with 384. 7% revenue growth year-over-year, versus -8. 4% for Ellington Credit Company (EARN). AGNC Investment Corp. (AGNC) offers the better valuation at 11. 5x trailing P/E (6. 9x forward), making it the more compelling value choice. Analysts rate AGNC Investment Corp. (AGNC) a "Hold" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, AGNC Investment Corp.

(AGNC) is the cheapest at 11. 5x versus Ellington Credit Company at 19. 9x. On forward P/E, Ellington Credit Company is actually cheaper at 4. 5x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, AGNC Investment Corp.

(AGNC) delivered a total return of -1. 2%, compared to -18. 2% for Ellington Credit Company (EARN). Over 10 years, the gap is even starker: AGNC returned +49. 5% versus EARN's +34. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ellington Credit Company (EARN) is the lower-risk stock at 0.

63β versus AGNC Investment Corp. 's 0. 74β — meaning AGNC is approximately 17% more volatile than EARN relative to the S&P 500. On balance sheet safety, AGNC Investment Corp. (AGNC) carries a lower debt/equity ratio of 1% versus 3% for Ellington Credit Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AGNC Investment Corp.

(AGNC) is pulling ahead at 384. 7% versus -8. 4% for Ellington Credit Company (EARN). On earnings-per-share growth, the picture is similar: AGNC Investment Corp. grew EPS 1760% year-over-year, compared to -22. 6% for Ellington Credit Company. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AGNC Investment Corp.

(AGNC) is the more profitable company, earning 17. 7% net margin versus 13. 0% for Ellington Credit Company — meaning it keeps 17. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGNC leads at 79. 6% versus 14. 0% for EARN. At the gross margin level — before operating expenses — AGNC leads at 100. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Ellington Credit Company (EARN) trades at 4.

5x forward P/E versus 6. 9x for AGNC Investment Corp. — 2. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EARN: 25. 5% to $6. 00.

All stocks in this comparison pay dividends.

Ellington Credit Company (EARN) offers the highest yield at 17. 1%, versus 14. 7% for AGNC Investment Corp. (AGNC).

For long-horizon retirement investors, Ellington Credit Company (EARN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

63), 17. 1% yield). Both have compounded well over 10 years (EARN: +34. 9%, AGNC: +49. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AGNC (Real Estate) and EARN (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AGNC is a small-cap high-growth stock; EARN is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.