AGM vs PMT

For growth investors, PennyMac Mortgage Investment Trust (PMT) is the stronger pick with 103.

8% revenue growth year-over-year, versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). Federal Agricultural Mortgage Corporation (AGM) offers the better valuation at 10. 8x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Federal Agricultural Mortgage Corporation (AGM) a "Buy" — based on 5 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, Federal Agricultural Mortgage Corporation (AGM) is the cheapest at 10.

8x versus PennyMac Mortgage Investment Trust at 11. 1x. On forward P/E, PennyMac Mortgage Investment Trust is actually cheaper at 7. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PennyMac Mortgage Investment Trust wins at 0. 24x versus Federal Agricultural Mortgage Corporation's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Federal Agricultural Mortgage Corporation (AGM) delivered a total return of +81.

7%, compared to -1. 5% for PennyMac Mortgage Investment Trust (PMT). Over 10 years, the gap is even starker: AGM returned +409. 4% versus PMT's +106. 3%. 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), PennyMac Mortgage Investment Trust (PMT) is the lower-risk stock at 0.

71β versus Federal Agricultural Mortgage Corporation's 0. 76β — meaning AGM is approximately 7% more volatile than PMT relative to the S&P 500. On balance sheet safety, PennyMac Mortgage Investment Trust (PMT) carries a lower debt/equity ratio of 10% versus 18% for Federal Agricultural Mortgage Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), PennyMac Mortgage Investment Trust (PMT) is pulling ahead at 103.

8% versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). On earnings-per-share growth, the picture is similar: Federal Agricultural Mortgage Corporation grew EPS 1. 1% year-over-year, compared to -27. 7% for PennyMac Mortgage Investment Trust. 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.

Federal Agricultural Mortgage Corporation (AGM) is the more profitable company, earning 15.

7% net margin versus 12. 4% for PennyMac Mortgage Investment Trust — meaning it keeps 15. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGM leads at 19. 4% versus 9. 1% for PMT. At the gross margin level — before operating expenses — AGM leads at 29. 5%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, PennyMac Mortgage Investment Trust (PMT) is the more undervalued stock at a PEG of 0. 24x versus Federal Agricultural Mortgage Corporation's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, PennyMac Mortgage Investment Trust (PMT) trades at 7. 1x forward P/E versus 9. 5x for Federal Agricultural Mortgage Corporation — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PMT: 36. 0% to $15. 00.

All stocks in this comparison pay dividends.

PennyMac Mortgage Investment Trust (PMT) offers the highest yield at 14. 5%, versus 4. 5% for Federal Agricultural Mortgage Corporation (AGM).

For long-horizon retirement investors, Federal Agricultural Mortgage Corporation (AGM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

76), 4. 5% yield, +409. 4% 10Y return). Both have compounded well over 10 years (AGM: +409. 4%, PMT: +106. 3%), 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 (AGM (Financial Services) and PMT (Real Estate)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AGM is a small-cap deep-value stock; PMT is a small-cap high-growth 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.