Chimera Investment (NYSE:CIM) vs. InvenTrust Properties (NYSE:IVT) Critical Comparison

InvenTrust Properties (NYSE:IVT) and Chimera Investment (NYSE:CIM) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Earnings & Valuation

This table compares InvenTrust Properties and Chimera Investment”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$263.01 million	7.31	$5.27 million	$0.10	283.20
Chimera Investment	$286.07 million	4.55	$126.10 million	$1.53	10.58

Chimera Investment has higher revenue and earnings than InvenTrust Properties. Chimera Investment is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

InvenTrust Properties has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Dividends

InvenTrust Properties pays an annual dividend of $0.90 per share and has a dividend yield of 3.2%. Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 9.1%. InvenTrust Properties pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chimera Investment pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chimera Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares InvenTrust Properties and Chimera Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	2.46%	0.42%	0.26%
Chimera Investment	28.79%	7.66%	1.54%

Institutional and Insider Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 48.4% of Chimera Investment shares are held by institutional investors. 0.4% of InvenTrust Properties shares are held by insiders. Comparatively, 0.9% of Chimera Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for InvenTrust Properties and Chimera Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	1	0	2.50
Chimera Investment	0	2	0	0	2.00

InvenTrust Properties currently has a consensus target price of $30.50, suggesting a potential upside of 7.70%. Chimera Investment has a consensus target price of $16.25, suggesting a potential upside of 0.37%. Given InvenTrust Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe InvenTrust Properties is more favorable than Chimera Investment.

Summary

Chimera Investment beats InvenTrust Properties on 10 of the 16 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the "Company," "IVT," or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark ("GRESB") member since 2013.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.