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DMO vs NMT

DMO
Western Asset Mortgage Opportunity Fund Inc.
BEARISH
Price
$10.97
Market Cap
$125.4M
Sector
Financial Services
AI Confidence
85%
NMT
Nuveen Massachusetts Quality Municipal Income Fund
NEUTRAL
Price
$12.65
Market Cap
$124.5M
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
DMO
9.14
NMT
--
Forward P/E
DMO
--
NMT
--
P/B Ratio
DMO
0.94
NMT
1.12
P/S Ratio
DMO
5.49
NMT
16.24
EV/EBITDA
DMO
--
NMT
--

Profitability

Gross Margin
DMO
100.0%
NMT
100.0%
Operating Margin
DMO
86.32%
NMT
83.63%
Profit Margin
DMO
59.99%
NMT
-6.0%
ROE
DMO
10.13%
NMT
-0.41%
ROA
DMO
4.77%
NMT
2.14%

Growth

Revenue Growth
DMO
-1.5%
NMT
1.5%
Earnings Growth
DMO
-24.6%
NMT
20.1%

Financial Health

Debt/Equity
DMO
0.92
NMT
0.66
Current Ratio
DMO
0.04
NMT
3.89
Quick Ratio
DMO
0.03
NMT
3.89

Dividends

Dividend Yield
DMO
13.13%
NMT
6.07%
Payout Ratio
DMO
129.17%
NMT
89.93%

AI Verdict

DMO BEARISH

DMO presents a precarious profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a significant disconnect between its Graham Number ($17.76) and growth-based Intrinsic Value ($8.40). While the stock appears undervalued on a P/E and P/B basis, this is offset by a sharp 24.6% decline in year-over-year earnings and a technical trend of 0/100. Most critically, the 13.13% dividend yield is unsustainable, as evidenced by a payout ratio of 129.17%, indicating the fund is returning more capital than it earns.

Strengths
Low P/E ratio (9.14) relative to sector average (39.80)
Trading slightly below book value (P/B 0.94)
Strong profit margins (59.99%)
Risks
Unsustainable dividend payout ratio (129.17%)
Significant earnings contraction (-24.6% YoY)
Extremely low liquidity ratios (Current Ratio 0.04)
NMT NEUTRAL

NMT exhibits a stable financial foundation with a Piotroski F-Score of 5/9, indicating a moderate health profile typical for a municipal income fund. While the fund has delivered strong 3-year price appreciation (+44.3%) and a respectable dividend yield of 6.07%, it currently trades at a premium to its book value (P/B 1.12). The negative profit margin and a very bearish technical trend score (10/100) suggest immediate headwinds despite positive earnings growth. Overall, the asset serves as an income vehicle rather than a growth play, with valuation currently slightly stretched above net asset value.

Strengths
Strong liquidity position with a current ratio of 3.89
Consistent dividend yield of 6.07% providing steady income
Positive earnings growth (YoY 20.10%, Q/Q 26.70%)
Risks
Negative profit margin (-6.00%) and negative ROE (-0.41%)
High dividend payout ratio (89.93%) which may limit capital reinvestment
Severely bearish technical trend (10/100) suggesting a potential price correction

Compare Another Pair

DMO vs NMT: Head-to-Head Comparison

This page compares Western Asset Mortgage Opportunity Fund Inc. (DMO) and Nuveen Massachusetts Quality Municipal Income Fund (NMT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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