EARN
Ellington Credit Company
Asset Management
Market Cap$180M
5Y Perf.-49.5%
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Stock Comparison
EARN vs EFC
Revenue, margins, valuation, and 5-year total return — side by side.
EFC
Ellington Financial Inc.
REIT - Mortgage
Market Cap$1.30B
5Y Perf.+28.4%
EARN vs EFC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | EARN | EFC |
|---|---|---|
| Industry | Asset Management | REIT - Mortgage |
| Market Cap | $180M | $1.30B |
| Revenue (TTM) | $51M | $429M |
| Net Income (TTM) | $-5M | $147M |
| Gross Margin | 31.3% | 88.6% |
| Operating Margin | 14.0% | 63.0% |
| Forward P/E | 4.5x | 7.2x |
| Total Debt | $563M | $16.96B |
| Cash & Equiv. | $32M | $202M |
EARN vs EFC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
EARN
EFC
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Ellington Credit Co… (EARN) | 100 | 50.5 | -49.5% |
| Ellington Financial… (EFC) | 100 | 128.4 | +28.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: EARN vs EFC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: EFC leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Ellington Credit Company is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
EARN
Ellington Credit Company
The Banking Pick
EARN is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.63, yield 17.1%
- Lower volatility, beta 0.63, current ratio 0.13x
- Beta 0.63, yield 17.1%, current ratio 0.13x
Best for: income & stability and sleep-well-at-night
EFC
Ellington Financial Inc.
The Real Estate Income Play
EFC carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 139.0%, EPS growth -12.5%, 3Y rev CAGR 150.0%
- 75.7% 10Y total return vs EARN's 34.9%
- 139.0% FFO/revenue growth vs EARN's -8.4%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | EFC | 139.0% FFO/revenue growth vs EARN's -8.4% |
| Value | EARN | Lower P/E (4.5x vs 7.2x) |
| Quality / Margins | EFC | 34.2% margin vs EARN's 13.0% |
| Stability / Safety | EFC | Beta 0.47 vs EARN's 0.63 |
| Dividends | EARN | 17.1% yield, vs EFC's 14.1% |
| Momentum (1Y) | EFC | +13.6% vs EARN's +8.3% |
| Efficiency (ROA) | EFC | 0.8% ROA vs EARN's -0.6%, ROIC 3.1% vs 0.7% |
EARN vs EFC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLEFCLAGGINGEARN
EARNEllington Credit Comp…
2leads
EFCEllington Financial I…
4leads
6 Total Categories
CATEGORYLEADERvs EARNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
EFC5/5
Valuation MetricsMultiples, price ratios, and targets
EFC4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
EARN5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
EFC6/6
Risk & VolatilityBeta, volatility, and downside exposure
EFC2/2
Analyst OutlookRatings, price targets, and dividends
EARN1/1
Income & Cash Flow (Last 12 Months)
EFC leads this category, winning 5 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
EFC is the larger business by revenue, generating $429M annually — 8.5x EARN's $51M. EFC is the more profitable business, keeping 34.2% of every revenue dollar as net income compared to EARN's 13.0%.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| RevenueTrailing 12 months | $51M | $429M |
| EBITDAEarnings before interest/tax | -$5M | $301M |
| Net IncomeAfter-tax profit | -$5M | $147M |
| Free Cash FlowCash after capex | $20M | $0 |
| Gross MarginGross profit ÷ Revenue | +31.3% | +88.6% |
| Operating MarginEBIT ÷ Revenue | +14.0% | +63.0% |
| Net MarginNet income ÷ Revenue | +13.0% | +34.2% |
| FCF MarginFCF ÷ Revenue | +18.0% | +75.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | +123.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -2.1% | -44.0% |
EFC leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
EFC leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 11.0x trailing earnings, EFC trades at a 45% valuation discount to EARN's 19.9x P/E. On an enterprise value basis, EFC's 39.3x EV/EBITDA is more attractive than EARN's 100.2x.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| Market CapShares × price | $180M | $1.3B |
| Enterprise ValueMkt cap + debt − cash | $711M | $18.1B |
| Trailing P/EPrice ÷ TTM EPS | 19.92x | 11.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.54x | 7.20x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.44x |
| EV / EBITDAEnterprise value multiple | 100.15x | 39.35x |
| Price / SalesMarket cap ÷ Revenue | 3.54x | 1.93x |
| Price / BookPrice ÷ Book value/share | 0.67x | 0.70x |
| Price / FCFMarket cap ÷ FCF | 19.70x | 2.56x |
EFC leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
EARN leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
EFC delivers a 8.4% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $-3 for EARN. EARN carries lower financial leverage with a 2.91x debt-to-equity ratio, signaling a more conservative balance sheet compared to EFC's 9.07x. On the Piotroski fundamental quality scale (0–9), EARN scores 8/9 vs EFC's 6/9, reflecting strong financial health.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| ROE (TTM)Return on equity | -2.8% | +8.4% |
| ROA (TTM)Return on assets | -0.6% | +0.8% |
| ROICReturn on invested capital | +0.7% | +3.1% |
| ROCEReturn on capital employed | +3.7% | +2.7% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 2.91x | 9.07x |
| Net DebtTotal debt minus cash | $531M | $16.8B |
| Cash & Equiv.Liquid assets | $32M | $202M |
| Total DebtShort + long-term debt | $563M | $17.0B |
| Interest CoverageEBIT ÷ Interest expense | -0.16x | 1.51x |
EARN leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
EFC leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in EFC five years ago would be worth $12,124 today (with dividends reinvested), compared to $8,185 for EARN. Over the past 12 months, EFC leads with a +13.6% total return vs EARN's +8.3%. The 3-year compound annual growth rate (CAGR) favors EFC at 14.3% vs EARN's 3.4% — a key indicator of consistent wealth creation.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| YTD ReturnYear-to-date | -3.8% | -0.4% |
| 1-Year ReturnPast 12 months | +8.3% | +13.6% |
| 3-Year ReturnCumulative with dividends | +10.5% | +49.2% |
| 5-Year ReturnCumulative with dividends | -18.2% | +21.2% |
| 10-Year ReturnCumulative with dividends | +34.9% | +75.7% |
| CAGR (3Y)Annualised 3-year return | +3.4% | +14.3% |
EFC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
EFC leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
EFC is the less volatile stock with a 0.47 beta — it tends to amplify market swings less than EARN's 0.63 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. EFC currently trades 92.8% from its 52-week high vs EARN's 78.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.63x | 0.47x |
| 52-Week HighHighest price in past year | $6.08 | $14.12 |
| 52-Week LowLowest price in past year | $4.27 | $11.28 |
| % of 52W HighCurrent price vs 52-week peak | +78.6% | +92.8% |
| RSI (14)Momentum oscillator 0–100 | 53.9 | 57.8 |
| Avg Volume (50D)Average daily shares traded | 493K | 1.6M |
EFC leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
EARN leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates EARN as "Hold" and EFC as "Buy". Consensus price targets imply 25.5% upside for EARN (target: $6) vs 3.1% for EFC (target: $14). For income investors, EARN offers the higher dividend yield at 17.11% vs EFC's 14.10%.
| Metric | EARNEllington Credit … | EFCEllington Financi… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $6.00 | $13.50 |
| # AnalystsCovering analysts | 7 | 13 |
| Dividend YieldAnnual dividend ÷ price | +17.1% | +14.1% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $0.82 | $1.85 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
EARN leads this category, winning 1 of 1 comparable metric.
Key Takeaway
EFC leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). EARN leads in 2 (Profitability & Efficiency, Analyst Outlook).
Best OverallEllington Financial Inc. (EFC)Leads 4 of 6 categories
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EARN vs EFC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is EARN or EFC a better buy right now?
For growth investors, Ellington Financial Inc.
(EFC) is the stronger pick with 139. 0% revenue growth year-over-year, versus -8. 4% for Ellington Credit Company (EARN). Ellington Financial Inc. (EFC) offers the better valuation at 11. 0x trailing P/E (7. 2x forward), making it the more compelling value choice. Analysts rate Ellington Financial Inc. (EFC) a "Buy" — based on 13 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.
02Which has the better valuation — EARN or EFC?
On trailing P/E, Ellington Financial Inc.
(EFC) is the cheapest at 11. 0x 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.
03Which is the better long-term investment — EARN or EFC?
Over the past 5 years, Ellington Financial Inc.
(EFC) delivered a total return of +21. 2%, compared to -18. 2% for Ellington Credit Company (EARN). Over 10 years, the gap is even starker: EFC returned +75. 7% 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.
04Which is safer — EARN or EFC?
By beta (market sensitivity over 5 years), Ellington Financial Inc.
(EFC) is the lower-risk stock at 0. 47β versus Ellington Credit Company's 0. 63β — meaning EARN is approximately 35% more volatile than EFC relative to the S&P 500. On balance sheet safety, Ellington Credit Company (EARN) carries a lower debt/equity ratio of 3% versus 9% for Ellington Financial Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — EARN or EFC?
By revenue growth (latest reported year), Ellington Financial Inc.
(EFC) is pulling ahead at 139. 0% versus -8. 4% for Ellington Credit Company (EARN). On earnings-per-share growth, the picture is similar: Ellington Financial Inc. grew EPS -12. 5% 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.
06Which has better profit margins — EARN or EFC?
Ellington Financial Inc.
(EFC) is the more profitable company, earning 21. 8% net margin versus 13. 0% for Ellington Credit Company — meaning it keeps 21. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EFC leads at 61. 6% versus 14. 0% for EARN. At the gross margin level — before operating expenses — EFC leads at 84. 3%, 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.
07Is EARN or EFC more undervalued right now?
On forward earnings alone, Ellington Credit Company (EARN) trades at 4.
5x forward P/E versus 7. 2x for Ellington Financial Inc. — 2. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EARN: 25. 5% to $6. 00.
08Which pays a better dividend — EARN or EFC?
All stocks in this comparison pay dividends.
Ellington Credit Company (EARN) offers the highest yield at 17. 1%, versus 14. 1% for Ellington Financial Inc. (EFC).
09Is EARN or EFC better for a retirement portfolio?
For long-horizon retirement investors, Ellington Financial Inc.
(EFC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 47), 14. 1% yield). Both have compounded well over 10 years (EFC: +75. 7%, EARN: +34. 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.
10What are the main differences between EARN and EFC?
These companies operate in different sectors (EARN (Financial Services) and EFC (Real Estate)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: EARN is a small-cap income-oriented stock; EFC 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.
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Revenue Growth>
%
(EARN: -8.4% · EFC: 123.0%)Net Margin>
%
(EARN: 13.0% · EFC: 34.2%)P/E Ratio<
x
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