Head-To-Head Analysis: Chimera Investment (NYSE:CIM) vs. Summit Industrial Income REIT (OTCMKTS:SMMCF)

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Chimera Investment (NYSE:CIM) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Summit Industrial Income REIT and Chimera Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Chimera Investment	46.48%	7.69%	1.56%

Analyst Ratings

This is a summary of current ratings and target prices for Summit Industrial Income REIT and Chimera Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Chimera Investment	0	2	0	0	2.00

Chimera Investment has a consensus price target of $16.25, indicating a potential upside of 9.83%. Given Chimera Investment’s stronger consensus rating and higher probable upside, analysts clearly believe Chimera Investment is more favorable than Summit Industrial Income REIT.

Valuation & Earnings

This table compares Summit Industrial Income REIT and Chimera Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Chimera Investment	$419.93 million	2.85	$126.10 million	$3.30	4.48

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

Insider & Institutional Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 48.4% of Chimera Investment shares are owned by institutional investors. 0.9% of Chimera Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 10.0%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Chimera Investment pays out 44.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Chimera Investment beats Summit Industrial Income REIT on 10 of the 12 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

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.