AGM vs PMT vs AGNC vs NLY vs PFSI

For growth investors, AGNC Investment Corp.

(AGNC) is the stronger pick with 384. 7% revenue growth year-over-year, versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). Annaly Capital Management, Inc. (NLY) offers the better valuation at 7. 7x trailing P/E (7. 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, Annaly Capital Management, Inc.

(NLY) is the cheapest at 7. 7x versus AGNC Investment Corp. at 11. 7x. On forward P/E, AGNC Investment Corp. is actually cheaper at 7. 0x — 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. 25x 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 +101.

1%, compared to -1. 2% for AGNC Investment Corp. (AGNC). Over 10 years, the gap is even starker: PFSI returned +617. 5% versus NLY's +36. 0%. 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.

62β versus PennyMac Financial Services, Inc. 's 0. 90β — meaning PFSI is approximately 45% more volatile than PMT relative to the S&P 500. On balance sheet safety, AGNC Investment Corp. (AGNC) carries a lower debt/equity ratio of 1% versus 18% for Federal Agricultural Mortgage Corporation — 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 -18. 9% for Federal Agricultural Mortgage Corporation (AGM). On earnings-per-share growth, the picture is similar: AGNC Investment Corp. grew EPS 1760% year-over-year, compared to -27. 7% for PennyMac Mortgage Investment Trust. Over a 3-year CAGR, AGNC leads at 26. 4% annualised revenue growth. 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.

Annaly Capital Management, Inc.

(NLY) is the more profitable company, earning 30. 3% net margin versus 11. 5% for PennyMac Financial Services, Inc. — meaning it keeps 30. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NLY leads at 102. 6% versus 9. 1% for PMT. 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.

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. 25x 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, AGNC Investment Corp. (AGNC) trades at 7. 0x forward P/E versus 9. 5x for Federal Agricultural Mortgage Corporation — 2. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 52. 4% to $138. 00.

All stocks in this comparison pay dividends.

PennyMac Mortgage Investment Trust (PMT) offers the highest yield at 14. 6%, versus 1. 3% for PennyMac Financial Services, Inc. (PFSI).

For long-horizon retirement investors, PennyMac Financial Services, Inc.

(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 90), 1. 3% yield, +617. 5% 10Y return). Both have compounded well over 10 years (PFSI: +617. 5%, AGNC: +47. 6%), 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) and AGNC (Real Estate) and NLY (Real Estate) and PFSI (Financial Services)), 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; AGNC is a small-cap high-growth stock; NLY is a mid-cap deep-value stock; PFSI 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.