AGO vs AGM vs PFSI vs AGNC

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). Assured Guaranty Ltd. (AGO) offers the better valuation at 8. 1x trailing P/E (12. 4x forward), making it the more compelling value choice. Analysts rate Assured Guaranty Ltd. (AGO) a "Buy" — based on 9 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, Assured Guaranty Ltd.

(AGO) is the cheapest at 8. 1x versus AGNC Investment Corp. at 11. 5x. On forward P/E, AGNC Investment Corp. is actually cheaper at 6. 9x — 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: Federal Agricultural Mortgage Corporation wins at 0. 65x versus Assured Guaranty Ltd. 's 1. 09x — 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 +102.

2%, compared to -2. 2% for AGNC Investment Corp. (AGNC). Over 10 years, the gap is even starker: PFSI returned +603. 4% versus AGNC's +46. 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), Assured Guaranty Ltd.

(AGO) is the lower-risk stock at 0. 45β versus PennyMac Financial Services, Inc. 's 0. 93β — meaning PFSI is approximately 109% more volatile than AGO 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 1. 1% for Federal Agricultural Mortgage Corporation. 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.

Assured Guaranty Ltd.

(AGO) is the more profitable company, earning 63. 8% net margin versus 11. 5% for PennyMac Financial Services, Inc. — meaning it keeps 63. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGO leads at 84. 0% versus 19. 4% for AGM. 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, Federal Agricultural Mortgage Corporation (AGM) is the more undervalued stock at a PEG of 0. 65x versus Assured Guaranty Ltd. 's 1. 09x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, AGNC Investment Corp. (AGNC) trades at 6. 9x forward P/E versus 12. 4x for Assured Guaranty Ltd. — 5. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 61. 3% to $143. 00.

All stocks in this comparison pay dividends.

AGNC Investment Corp. (AGNC) offers the highest yield at 14. 7%, versus 1. 3% for PennyMac Financial Services, Inc. (PFSI).

For long-horizon retirement investors, Assured Guaranty Ltd.

(AGO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 45), 1. 7% yield, +249. 3% 10Y return). Both have compounded well over 10 years (AGO: +249. 3%, AGNC: +46. 9%), 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 (AGO (Financial Services) and AGM (Financial Services) and PFSI (Financial Services) and AGNC (Real Estate)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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