Angel Oak Mortgage REIT (NYSE:AOMR – Get Free Report) and Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Profitability
This table compares Angel Oak Mortgage REIT and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angel Oak Mortgage REIT | 30.65% | 5.22% | 0.51% |
| Cherry Hill Mortgage Investment | 7.28% | 16.40% | 1.40% |
Analyst Ratings
This is a summary of current recommendations for Angel Oak Mortgage REIT and Cherry Hill Mortgage Investment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angel Oak Mortgage REIT | 0 | 3 | 3 | 0 | 2.50 |
| Cherry Hill Mortgage Investment | 1 | 1 | 2 | 0 | 2.25 |
Insider & Institutional Ownership
80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are owned by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are owned by company insiders. Comparatively, 1.5% of Cherry Hill Mortgage Investment shares are owned by company 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.
Dividends
Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 14.7%. Cherry Hill Mortgage Investment pays an annual dividend of $0.40 per share and has a dividend yield of 14.6%. Angel Oak Mortgage REIT pays out 70.7% of its earnings in the form of a dividend. Cherry Hill Mortgage Investment pays out -307.7% 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. Cherry Hill Mortgage Investment has raised its dividend for 1 consecutive years.
Volatility & Risk
Angel Oak Mortgage REIT has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Valuation & Earnings
This table compares Angel Oak Mortgage REIT and Cherry Hill Mortgage Investment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Angel Oak Mortgage REIT | $143.65 million | 1.51 | $44.02 million | $1.81 | 4.80 |
| Cherry Hill Mortgage Investment | $61.10 million | 1.65 | -$3.00 million | ($0.13) | -21.08 |
Angel Oak Mortgage REIT has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.
Summary
Angel Oak Mortgage REIT beats Cherry Hill Mortgage Investment on 12 of the 17 factors compared between the two stocks.
About Angel Oak Mortgage REIT
Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.
About Cherry Hill Mortgage Investment
Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Cherry Hill Mortgage Investment Corporation was incorporated in 2012 and is based in Farmingdale, New Jersey.
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