PMTU vs MFA

For growth investors, MFA Financial, Inc.

(MFA) is the stronger pick with 213. 0% revenue growth year-over-year, versus 103. 8% for PennyMac Mortgage Investment Trust (PMTU). 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 MFA Financial, Inc. (MFA) a "Hold" — based on 22 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 PennyMac Mortgage Investment Trust at 25. 8x. On forward P/E, MFA Financial, Inc. is actually cheaper at 7. 1x.

Over the past 5 years, PennyMac Mortgage Investment Trust (PMTU) delivered a total return of +26.

2%, compared to -1. 6% for MFA Financial, Inc. (MFA). Over 10 years, the gap is even starker: PMTU returned +26. 2% versus MFA's +9. 0%. 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 (PMTU) is the lower-risk stock at 0.

55β versus MFA Financial, Inc. 's 0. 77β — meaning MFA is approximately 41% more volatile than PMTU relative to the S&P 500. On balance sheet safety, MFA Financial, Inc. (MFA) carries a lower debt/equity ratio of 6% versus 10% for PennyMac Mortgage Investment Trust — 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 103. 8% for PennyMac Mortgage Investment Trust (PMTU). On earnings-per-share growth, the picture is similar: MFA Financial, Inc. grew EPS 104. 9% 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.

MFA Financial, Inc.

(MFA) is the more profitable company, earning 20. 2% net margin versus 12. 4% for PennyMac Mortgage Investment Trust — 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 9. 1% for PMTU. 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, MFA Financial, Inc.

(MFA) trades at 7. 1x forward P/E versus 16. 4x for PennyMac Mortgage Investment Trust — 9. 2x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

MFA Financial, Inc. (MFA) offers the highest yield at 18. 3%, versus 6. 3% for PennyMac Mortgage Investment Trust (PMTU).

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

55), 6. 3% yield). Both have compounded well over 10 years (PMTU: +26. 2%, MFA: +9. 0%), 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.