Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Mortgage Real Estate Investment Trusts (REITs) industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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7 Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Mortgage Real Estate Investment Trusts (REITs) industry for Friday, August 21, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Mortgage Real Estate Investment Trusts (REITs) industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Arbor Realty Trust, Inc. | ABR | 1.99 | 61.7 | na | 13.8% | 0.46 | 18.5 | B |
| AGNC Investment Corp. | AGNC | 4.95 | 5.8 | na | (0.6%) | 1.20 | na | B |
| Angel Oak Mortgage REIT, Inc. | AOMR | 5.69 | 11.6 | na | 12.9% | 0.86 | na | A |
| Apollo Commercial Real Estate Finance, Inc. | ARI | 1.50 | 8.7 | na | 20.1% | 0.71 | na | A |
| Ladder Capital Corp | LADR | 5.75 | 23.9 | na | 10.0% | 0.89 | na | B |
| TPG Mortgage Investment Trust, Inc. | MITT | 2.52 | 9.2 | na | 7.2% | 0.66 | 6.6 | A |
| Rithm Capital Corp. | RITM | 1.28 | 16.9 | na | 4.5% | 0.82 | na | A |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Arbor Realty Trust, Inc.’s Value Grade
Value Grade:
| Metric | Score | ABR | Industry Median |
| Price/Sales | 48 | 1.99 | 4.14 |
| Price/Earnings | 88 | 61.7 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 3 | 13.8% | 10.8% |
| Price/Book Value | 7 | 0.46 | 0.71 |
| Price/Free Cash Flow | 47 | 18.5 | 22.4 |
Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. It operates in two segments, Structured Business and Agency Business. The company invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. It also offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing products to borrowers looking to develop, acquire or refinance conventional, workforce and affordable single-family rental (SFR) housing; multifamily investors short-term floating-rate financing for new and construction-ready multifamily projects; and mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction. In addition, the company provides financing by making preferred equity investments in entities that directly or indirectly own real property that are subordinate to a first mortgage loan; and invest in structured transactions, which are primarily comprised of joint ventures formed to acquire, develop and/or sell real estate-related assets. Further, it underwrites, originates, sells, and services financing loans underwritten using similar guidelines of existing agency loans sold to the government-sponsored enterprises; and long-term permanent fixed rate loans on SFR properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Arbor Realty Trust, Inc. has a Value Score of 68, which is considered to be undervalued.
When you look at Arbor Realty Trust, Inc.’s price-to-sales ratio at 1.99 compared to the industry median at 4.14, this company has a lower price relative to revenue compared to its peers. This could make Arbor Realty Trust, Inc.’s stock more attractive for value investors.
Arbor Realty Trust, Inc.’s price-earnings ratio is 61.70 compared to the industry median at 8.80. This means it has a higher share price relative to earnings compared to its peers. This could make Arbor Realty Trust, Inc. less attractive for value investors.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Arbor Realty Trust, Inc.’s shareholder yield is higher than its industry median ratio of 10.75%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Arbor Realty Trust, Inc.’s price-to-book ratio is lower than its industry median ratio of 0.71. This could make Arbor Realty Trust, Inc. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Arbor Realty Trust, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Arbor Realty Trust, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 22.35. This could make Arbor Realty Trust, Inc. more attractive because the lower P/FCF ratio indicates that Arbor Realty Trust, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
AGNC Investment Corp.’s Value Grade
Value Grade:
| Metric | Score | AGNC | Industry Median |
| Price/Sales | 77 | 4.95 | 4.14 |
| Price/Earnings | 6 | 5.8 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 54 | (0.6%) | 10.8% |
| Price/Book Value | 29 | 1.20 | 0.71 |
| Price/Free Cash Flow | na | na | 22.4 |
AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal or state corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
AGNC Investment Corp. has a Value Score of 62, which is considered to be undervalued.
AGNC Investment Corp.’s price-earnings ratio is 5.8 compared to the industry median at 8.8. This means that it has a lower price relative to its earnings compared to its peers. This makes AGNC Investment Corp. more attractive for value investors.
AGNC Investment Corp.’s price-to-book ratio is lower than its peers. This could make AGNC Investment Corp. more attractive for value investors when compared to the industry median at 0.71.
You can read more about AGNC Investment Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Angel Oak Mortgage REIT, Inc.’s Value Grade
Value Grade:
| Metric | Score | AOMR | Industry Median |
| Price/Sales | 80 | 5.69 | 4.14 |
| Price/Earnings | 23 | 11.6 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 3 | 12.9% | 10.8% |
| Price/Book Value | 17 | 0.86 | 0.71 |
| Price/Free Cash Flow | na | na | 22.4 |
Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien nonqualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company also offers futures contracts; non-agency residential mortgage backed securities; non-recourse securitization obligations; collateralized by residential mortgage loans; commercial bridge loans; mezzanine loans; construction loans; B-Notes; home equity lines of credit (HELOCs); and other related instruments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Angel Oak Mortgage, Inc. and changed its name to Angel Oak Mortgage REIT, Inc. in March 2023. Angel Oak Mortgage REIT, Inc. was incorporated in 2018 and is headquartered in Atlanta, Georgia.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Angel Oak Mortgage REIT, Inc. has a Value Score of 82, which is considered to be undervalued.
Angel Oak Mortgage REIT, Inc.’s price-earnings ratio is 11.6 compared to the industry median at 8.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Angel Oak Mortgage REIT, Inc. less attractive for value investors.
Angel Oak Mortgage REIT, Inc.’s price-to-book ratio is lower than its peers. This could make Angel Oak Mortgage REIT, Inc. more attractive for value investors when compared to the industry median at 0.71.
You can read more about Angel Oak Mortgage REIT, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Apollo Commercial Real Estate Finance, Inc.’s Value Grade
Value Grade:
| Metric | Score | ARI | Industry Median |
| Price/Sales | 41 | 1.50 | 4.14 |
| Price/Earnings | 12 | 8.7 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 1 | 20.1% | 10.8% |
| Price/Book Value | 13 | 0.71 | 0.71 |
| Price/Free Cash Flow | na | na | 22.4 |
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments. The company is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Apollo Commercial Real Estate Finance, Inc. has a Value Score of 97, which is considered to be undervalued.
Apollo Commercial Real Estate Finance, Inc.’s price-earnings ratio is 8.7 compared to the industry median at 8.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Apollo Commercial Real Estate Finance, Inc. more attractive for value investors.
Apollo Commercial Real Estate Finance, Inc.’s price-to-book ratio is lower than its peers. This could make Apollo Commercial Real Estate Finance, Inc. fairly attractive for value investors when compared to the industry median at 0.71.
You can read more about Apollo Commercial Real Estate Finance, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Ladder Capital Corp’s Value Grade
Value Grade:
| Metric | Score | LADR | Industry Median |
| Price/Sales | 81 | 5.75 | 4.14 |
| Price/Earnings | 60 | 23.9 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 5 | 10.0% | 10.8% |
| Price/Book Value | 18 | 0.89 | 0.71 |
| Price/Free Cash Flow | na | na | 22.4 |
Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. It operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates and acquires balance sheet loans that provide interim financing to borrowers seeking short-term capital for the acquisition or transition of commercial real estate; originates conduit loans, which are first mortgage loans on commercial real estate properties for sale in commercial mortgage-backed securities securitizations; and invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. Its Securities segment invests in CMBS, U.S. Agency securities, corporate bonds, equity securities, and U.S. Treasury securities that are not classified as cash and cash equivalents. The Real Estate segment engages in net leased properties, other diversified real estate, and investments in unconsolidated ventures. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Ladder Capital Corp has a Value Score of 63, which is considered to be undervalued.
Ladder Capital Corp’s price-earnings ratio is 23.9 compared to the industry median at 8.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Ladder Capital Corp less attractive for value investors.
Ladder Capital Corp’s price-to-book ratio is lower than its peers. This could make Ladder Capital Corp more attractive for value investors when compared to the industry median at 0.71.
You can read more about Ladder Capital Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
TPG Mortgage Investment Trust, Inc.’s Value Grade
Value Grade:
| Metric | Score | MITT | Industry Median |
| Price/Sales | 55 | 2.52 | 4.14 |
| Price/Earnings | 13 | 9.2 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 10 | 7.2% | 10.8% |
| Price/Book Value | 11 | 0.66 | 0.71 |
| Price/Free Cash Flow | 14 | 6.6 | 22.4 |
TPG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio comprises residential investments, such as non-agency loans, agency-eligible loans, home equity loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG Mortgage Investment Trust, Inc. was formerly known as AG Mortgage Investment Trust, Inc. and changed its name to TPG Mortgage Investment Trust, Inc. in December 2025. The company was incorporated in 2011 and is based in New York, New York. TPG Mortgage Investment Trust, Inc. operates as a subsidiary of TPG Inc.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
TPG Mortgage Investment Trust, Inc. has a Value Score of 95, which is considered to be undervalued.
TPG Mortgage Investment Trust, Inc.’s price-earnings ratio is 9.2 compared to the industry median at 8.8. This means that it has a higher price relative to its earnings compared to its peers. This makes TPG Mortgage Investment Trust, Inc. less attractive for value investors.
TPG Mortgage Investment Trust, Inc.’s price-to-book ratio is lower than its peers. This could make TPG Mortgage Investment Trust, Inc. fairly attractive for value investors when compared to the industry median at 0.71.
You can read more about TPG Mortgage Investment Trust, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Rithm Capital Corp.’s Value Grade
Value Grade:
| Metric | Score | RITM | Industry Median |
| Price/Sales | 37 | 1.28 | 4.14 |
| Price/Earnings | 42 | 16.9 | 8.8 |
| EV/EBITDA | na | na | 17.7 |
| Shareholder Yield | 18 | 4.5% | 10.8% |
| Price/Book Value | 16 | 0.82 | 0.71 |
| Price/Free Cash Flow | na | na | 22.4 |
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services in the United States. It operates through Origination and Servicing, Residential Transitional Lending, and Asset Management and Investment Portfolio. The company’s investment portfolio primarily comprises of single-family rental properties, title, appraisal and property preservation and maintenance businesses; real estate securities, call rights, SFR properties, residential mortgage loans, collateralized loan obligations and consumer loans, excess mortgage servicing rights, servicer advance investments, and asset management related investments. It also provides government-sponsored enterprise (GSE) and government guaranteed loans; non-GSE or non-government guaranteed loans; and residential transitional lending. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Rithm Capital Corp. has a Value Score of 86, which is considered to be undervalued.
Rithm Capital Corp.’s price-earnings ratio is 16.9 compared to the industry median at 8.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Rithm Capital Corp. less attractive for value investors.
Rithm Capital Corp.’s price-to-book ratio is lower than its peers. This could make Rithm Capital Corp. more attractive for value investors when compared to the industry median at 0.71.
You can read more about Rithm Capital Corp.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Mortgage Real Estate Investment Trusts (REITs) Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Mortgage Real Estate Investment Trusts (REITs) stocks as well as other industrys.
Choosing Which of the 7 Best Mortgage Real Estate Investment Trusts (REITs) Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Arbor Realty Trust, Inc. stock has a Value Grade of B.
- AGNC Investment Corp. stock has a Value Grade of B.
- Angel Oak Mortgage REIT, Inc. stock has a Value Grade of A.
- Apollo Commercial Real Estate Finance, Inc. stock has a Value Grade of A.
- Ladder Capital Corp stock has a Value Grade of B.
- TPG Mortgage Investment Trust, Inc. stock has a Value Grade of A.
- Rithm Capital Corp. stock has a Value Grade of A.
Now that you have a bit more background about each of the 7 undervalued stocks in the Mortgage Real Estate Investment Trusts (REITs) industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Mortgage Real Estate Investment Trusts (REITs) Stocks
Want to learn more about Mortgage Real Estate Investment Trusts (REITs) stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 7 Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks for Friday, August 21
- Why Ready Capital Corporation’s (RC) Stock Is Down 7.37%
- 6 Undervalued Mortgage Real Estate Investment Trusts (REITs) Stocks for Thursday, August 20
- Is Angel Oak Mortgage REIT, Inc. (AOMR) Overvalued?
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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