Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) and Chimera Investment (NYSE:CIM – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Volatility & Risk
Bimini Capital Management has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.
Insider & Institutional Ownership
48.4% of Chimera Investment shares are owned by institutional investors. 45.4% of Bimini Capital Management shares are owned by insiders. Comparatively, 1.5% of Chimera Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bimini Capital Management | 0 | 0 | 0 | 0 | 0.00 |
| Chimera Investment | 1 | 2 | 1 | 0 | 2.00 |
Chimera Investment has a consensus target price of $15.25, indicating a potential upside of 18.18%. Given Chimera Investment’s stronger consensus rating and higher probable upside, analysts clearly believe Chimera Investment is more favorable than Bimini Capital Management.
Profitability
This table compares Bimini Capital Management and Chimera Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bimini Capital Management | 5.98% | 11.89% | 0.63% |
| Chimera Investment | 4.27% | 7.36% | 1.36% |
Earnings & Valuation
This table compares Bimini Capital Management and Chimera Investment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bimini Capital Management | $11.90 million | 1.38 | -$1.31 million | $0.09 | 18.13 |
| Chimera Investment | $760.95 million | 1.41 | $176.07 million | ($0.40) | -32.26 |
Chimera Investment has higher revenue and earnings than Bimini Capital Management. Chimera Investment is trading at a lower price-to-earnings ratio than Bimini Capital Management, indicating that it is currently the more affordable of the two stocks.
Summary
Chimera Investment beats Bimini Capital Management on 9 of the 14 factors compared between the two stocks.
About Bimini Capital Management
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.
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.
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