Cherry Hill Mortgage Investment (NYSE: CHMI) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
This is a breakdown of recent ratings and recommmendations for Cherry Hill Mortgage Investment and New York Mortgage Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cherry Hill Mortgage Investment||0||0||3||0||3.00|
|New York Mortgage Trust||0||3||1||0||2.25|
Risk and Volatility
Cherry Hill Mortgage Investment has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.
Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 11.2%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.5%. Cherry Hill Mortgage Investment pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Mortgage Trust pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
51.9% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 38.9% of New York Mortgage Trust shares are held by institutional investors. 8.9% of Cherry Hill Mortgage Investment shares are held by insiders. Comparatively, 1.3% of New York Mortgage Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Cherry Hill Mortgage Investment and New York Mortgage Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cherry Hill Mortgage Investment||113.50%||9.83%||1.49%|
|New York Mortgage Trust||22.10%||13.38%||0.85%|
Earnings & Valuation
This table compares Cherry Hill Mortgage Investment and New York Mortgage Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cherry Hill Mortgage Investment||$42.05 million||5.31||$47.35 million||$2.22||7.91|
|New York Mortgage Trust||$441.10 million||1.51||$91.98 million||$0.66||9.00|
New York Mortgage Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Cherry Hill Mortgage Investment beats New York Mortgage Trust on 10 of the 16 factors compared between the two stocks.
About Cherry Hill Mortgage Investment
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.
About New York Mortgage Trust
New York Mortgage Trust, Inc., a real estate investment trust (REIT), acquires, invests in, finances, and manages mortgage-related and residential housing-related, and financial assets in the United States. The company's investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets; non-agency residential mortgage-backed securities; multi-family commercial mortgage-backed securities; and preferred equities. It qualifies as a REIT for federal income tax purposes. The company generally would not be subject to federal income tax on that portion of its income if it distributes at least 90% of its taxable income to its stockholders. New York Mortgage Trust, Inc. was founded in 1989 and is headquartered in New York City, New York.
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