Head-To-Head Comparison: Chimera Investment Corporation (CIM) versus Its Competitors
Chimera Investment Corporation (NYSE: CIM) is one of 38 public companies in the “Mortgage REITs” industry, but how does it compare to its rivals? We will compare Chimera Investment Corporation to related businesses based on the strength of its institutional ownership, valuation, analyst recommendations, risk, earnings, dividends and profitability.
This is a summary of recent ratings for Chimera Investment Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chimera Investment Corporation||0||3||0||0||2.00|
|Chimera Investment Corporation Competitors||110||828||838||31||2.44|
Chimera Investment Corporation presently has a consensus price target of $18.50, indicating a potential downside of 3.14%. As a group, “Mortgage REITs” companies have a potential upside of 1.96%. Given Chimera Investment Corporation’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Chimera Investment Corporation has less favorable growth aspects than its rivals.
Risk and Volatility
Chimera Investment Corporation has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Chimera Investment Corporation’s rivals have a beta of 0.71, indicating that their average stock price is 29% less volatile than the S&P 500.
Chimera Investment Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 10.5%. Chimera Investment Corporation pays out 57.3% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.0% and pay out 80.5% of their earnings in the form of a dividend. Chimera Investment Corporation has raised its dividend for 2 consecutive years. Chimera Investment Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
52.2% of Chimera Investment Corporation shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.7% of Chimera Investment Corporation shares are owned by company insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Chimera Investment Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Chimera Investment Corporation||$933.35 million||N/A||5.47|
|Chimera Investment Corporation Competitors||$626.30 million||$243.53 million||1.56|
Chimera Investment Corporation has higher revenue, but lower earnings than its rivals. Chimera Investment Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This table compares Chimera Investment Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chimera Investment Corporation||63.94%||14.27%||2.52%|
|Chimera Investment Corporation Competitors||49.20%||10.70%||2.78%|
About Chimera Investment Corporation
Chimera Investment Corporation is a real estate investment trust (REIT). The company is engaged in the business of investing in a portfolio of mortgage assets, including agency residential mortgage-backed security (RMBS), non-agency RMBS, agency commercial mortgage-backed securities (CMBS), residential mortgage loans and real estate related securities. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses to achieve this objective by investing in an investment portfolio of RMBS, agency CMBS, residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. The MBS and real estate-related securities the Company purchases include investment-grade and non-investment grade classes, including the BB-rated, B-rated and non-rated classes. It also invests in investment grade and non-investment grade RMBS.
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