Head-To-Head Review: Cherry Hill Mortgage Investment (CHMI) vs. Its Competitors

Cherry Hill Mortgage Investment (NYSE:CHMI) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare Cherry Hill Mortgage Investment to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $0.40 per share and has a dividend yield of 15.1%. Cherry Hill Mortgage Investment pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.1% of their earnings in the form of a dividend. Cherry Hill Mortgage Investment has raised its dividend for 1 consecutive years.

Profitability

This table compares Cherry Hill Mortgage Investment and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cherry Hill Mortgage Investment	26.43%	21.74%	1.85%
Cherry Hill Mortgage Investment Competitors	313.70%	79.21%	3.63%

Earnings and Valuation

This table compares Cherry Hill Mortgage Investment and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cherry Hill Mortgage Investment	$61.10 million	$6.83 million	132.25
Cherry Hill Mortgage Investment Competitors	$2.27 billion	$396.08 million	17.13

Cherry Hill Mortgage Investment’s competitors have higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Cherry Hill Mortgage Investment and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cherry Hill Mortgage Investment	1	2	1	0	2.00
Cherry Hill Mortgage Investment Competitors	5540	20102	22433	641	2.37

Cherry Hill Mortgage Investment currently has a consensus price target of $3.00, indicating a potential upside of 13.42%. As a group, “Capital Markets” companies have a potential upside of 25.71%. Given Cherry Hill Mortgage Investment’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Cherry Hill Mortgage Investment has less favorable growth aspects than its competitors.

Risk & Volatility

Cherry Hill Mortgage Investment has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment’s competitors have a beta of 0.81, meaning that their average stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 1.6% of Cherry Hill Mortgage Investment shares are held by company insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Cherry Hill Mortgage Investment competitors beat Cherry Hill Mortgage Investment on 12 of the 15 factors compared.

Cherry Hill Mortgage Investment Company Profile

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.