EARN vs MFA

For growth investors, MFA Financial, Inc.

(MFA) is the stronger pick with 213. 0% revenue growth year-over-year, versus -8. 4% for Ellington Credit Company (EARN). MFA Financial, Inc. (MFA) offers the better valuation at 5. 8x trailing P/E (7. 1x forward), making it the more compelling value choice. Analysts rate Ellington Credit Company (EARN) a "Hold" — based on 7 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, MFA Financial, Inc.

(MFA) is the cheapest at 5. 8x versus Ellington Credit Company at 20. 3x. On forward P/E, Ellington Credit Company is actually cheaper at 4. 6x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, MFA Financial, Inc.

(MFA) delivered a total return of -0. 6%, compared to -17. 4% for Ellington Credit Company (EARN). Over 10 years, the gap is even starker: EARN returned +31. 3% versus MFA's +7. 8%. 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), Ellington Credit Company (EARN) is the lower-risk stock at 0.

63β versus MFA Financial, Inc. 's 0. 77β — meaning MFA is approximately 22% more volatile than EARN relative to the S&P 500. On balance sheet safety, Ellington Credit Company (EARN) carries a lower debt/equity ratio of 3% versus 6% for MFA Financial, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MFA Financial, Inc.

(MFA) is pulling ahead at 213. 0% versus -8. 4% for Ellington Credit Company (EARN). On earnings-per-share growth, the picture is similar: MFA Financial, Inc. grew EPS 104. 9% 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.

MFA Financial, Inc.

(MFA) is the more profitable company, earning 20. 2% net margin versus 13. 0% for Ellington Credit Company — meaning it keeps 20. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MFA leads at 78. 8% versus 14. 0% for EARN. At the gross margin level — before operating expenses — MFA leads at 96. 2%, 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, Ellington Credit Company (EARN) trades at 4.

6x forward P/E versus 7. 1x for MFA Financial, Inc. — 2. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EARN: 23. 2% to $6. 00.

All stocks in this comparison pay dividends.

MFA Financial, Inc. (MFA) offers the highest yield at 18. 4%, versus 16. 8% for Ellington Credit Company (EARN).

For long-horizon retirement investors, Ellington Credit Company (EARN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

63), 16. 8% yield). Both have compounded well over 10 years (EARN: +31. 3%, MFA: +7. 8%), 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.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: EARN is a small-cap income-oriented stock; MFA 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.