PMT vs CIM vs AGNC vs MFA

For growth investors, AGNC Investment Corp.

(AGNC) is the stronger pick with 384. 7% revenue growth year-over-year, versus 103. 8% for PennyMac Mortgage Investment Trust (PMT). Chimera Investment Corporation (CIM) offers the better valuation at 4. 9x trailing P/E (6. 4x forward), making it the more compelling value choice. Analysts rate PennyMac Mortgage Investment Trust (PMT) a "Buy" — based on 26 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, Chimera Investment Corporation (CIM) is the cheapest at 4.

9x versus AGNC Investment Corp. at 11. 5x. On forward P/E, Chimera Investment Corporation is actually cheaper at 6. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Chimera Investment Corporation wins at 0. 13x versus PennyMac Mortgage Investment Trust's 0. 24x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, MFA Financial, Inc.

(MFA) delivered a total return of -0. 6%, compared to -37. 5% for Chimera Investment Corporation (CIM). Over 10 years, the gap is even starker: PMT returned +99. 1% 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), PennyMac Mortgage Investment Trust (PMT) is the lower-risk stock at 0.

71β versus Chimera Investment Corporation's 0. 81β — meaning CIM is approximately 14% 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 10% for PennyMac Mortgage Investment Trust — 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 103. 8% for PennyMac Mortgage Investment Trust (PMT). 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. 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.

Chimera Investment Corporation (CIM) is the more profitable company, earning 28.

1% net margin versus 12. 4% for PennyMac Mortgage Investment Trust — meaning it keeps 28. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CIM leads at 93. 2% 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, Chimera Investment Corporation (CIM) is the more undervalued stock at a PEG of 0. 13x versus PennyMac Mortgage Investment Trust's 0. 24x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Chimera Investment Corporation (CIM) trades at 6. 4x forward P/E versus 7. 1x for MFA Financial, Inc. — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PMT: 35. 5% to $15. 00.

All stocks in this comparison pay dividends.

MFA Financial, Inc. (MFA) offers the highest yield at 18. 4%, versus 7. 6% for Chimera Investment Corporation (CIM).

For long-horizon retirement investors, PennyMac Mortgage Investment Trust (PMT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

71), 14. 5% yield). Both have compounded well over 10 years (PMT: +99. 1%, CIM: +19. 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.

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

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.