Cherry Hill Mortgage Investment Corporation (CHMI) vs. Its Peers Financial Survey

Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it contrast to its competitors? We will compare Cherry Hill Mortgage Investment Corporation to related companies based on the strength of its dividends, analyst recommendations, valuation, risk, profitability, earnings and institutional ownership.

Dividends

Cherry Hill Mortgage Investment Corporation pays an annual dividend of $1.96 per share and has a dividend yield of 10.6%. Cherry Hill Mortgage Investment Corporation pays out 28.1% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend. Cherry Hill Mortgage Investment Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Cherry Hill Mortgage Investment Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Cherry Hill Mortgage Investment Corporation $65.25 million N/A 2.66
Cherry Hill Mortgage Investment Corporation Competitors $320.94 million $123.24 million 1.50

Cherry Hill Mortgage Investment Corporation’s competitors have higher revenue and earnings than Cherry Hill Mortgage Investment Corporation. Cherry Hill Mortgage Investment Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Cherry Hill Mortgage Investment Corporation has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment Corporation’s competitors have a beta of 0.71, suggesting that their average share price is 29% less volatile than the S&P 500.

Insider and Institutional Ownership

62.4% of Cherry Hill Mortgage Investment Corporation shares are held by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are held by institutional investors. 8.9% of Cherry Hill Mortgage Investment Corporation shares are held by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cherry Hill Mortgage Investment Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment Corporation 0 1 2 0 2.67
Cherry Hill Mortgage Investment Corporation Competitors 112 841 842 31 2.43

Cherry Hill Mortgage Investment Corporation presently has a consensus target price of $19.17, suggesting a potential upside of 3.21%. As a group, “Mortgage REITs” companies have a potential upside of 2.56%. Given Cherry Hill Mortgage Investment Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cherry Hill Mortgage Investment Corporation is more favorable than its competitors.

Profitability

This table compares Cherry Hill Mortgage Investment Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cherry Hill Mortgage Investment Corporation 138.90% 9.49% 1.81%
Cherry Hill Mortgage Investment Corporation Competitors 49.09% 10.64% 2.78%

Summary

Cherry Hill Mortgage Investment Corporation beats its competitors on 9 of the 14 factors compared.

About Cherry Hill Mortgage Investment Corporation

Cherry Hill Mortgage Investment Corporation is a residential real estate finance company. The Company is focused on acquiring, investing in and managing residential mortgage assets in the United States. Its principal objective is to generate attractive current yields and risk-adjusted total returns for its stockholders over the long term, primarily through dividend distributions and secondarily through capital appreciation. The Company focuses on attaining this objective, subject to market conditions and availability and terms of financing, by selectively constructing and managing a targeted portfolio of Servicing Related Assets, residential mortgage-backed securities (RMBS), prime mortgage loans and other cashflowing residential mortgage assets. The Company operates its business through segments, including investments in RMBS; investments in Servicing Related Assets, and All Other. The Company is externally managed by Cherry Hill Mortgage Management, LLC.

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