AGM vs RITM

For growth investors, Rithm Capital Corp.

(RITM) is the stronger pick with 20. 0% revenue growth year-over-year, versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). Rithm Capital Corp. (RITM) offers the better valuation at 9. 5x trailing P/E (4. 3x 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, Rithm Capital Corp.

(RITM) is the cheapest at 9. 5x versus Federal Agricultural Mortgage Corporation at 10. 8x. On forward P/E, Rithm Capital Corp. is actually cheaper at 4. 3x.

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

7%, compared to +42. 2% for Rithm Capital Corp. (RITM). Over 10 years, the gap is even starker: AGM returned +409. 4% versus RITM's +79. 1%. 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), Federal Agricultural Mortgage Corporation (AGM) is the lower-risk stock at 0.

76β versus Rithm Capital Corp. 's 0. 86β — meaning RITM is approximately 13% more volatile than AGM relative to the S&P 500. On balance sheet safety, Rithm Capital Corp. (RITM) carries a lower debt/equity ratio of 4% versus 18% for Federal Agricultural Mortgage Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Rithm Capital Corp.

(RITM) is pulling ahead at 20. 0% 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 -37. 7% for Rithm Capital Corp.. 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. 0% for Rithm Capital Corp. — meaning it keeps 15. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RITM leads at 44. 6% versus 19. 4% for AGM. At the gross margin level — before operating expenses — RITM leads at 90. 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.

On forward earnings alone, Rithm Capital Corp.

(RITM) trades at 4. 3x forward P/E versus 9. 5x for Federal Agricultural Mortgage Corporation — 5. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RITM: 38. 5% to $13. 63.

All stocks in this comparison pay dividends.

Rithm Capital Corp. (RITM) offers the highest yield at 11. 6%, 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%, RITM: +79. 1%), 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 RITM (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; RITM 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.