Analyzing Cherry Hill Mortgage Investment (CHMI) & New York Mortgage Trust (NYMT)
Cherry Hill Mortgage Investment (NYSE: CHMI) and New York Mortgage Trust (NASDAQ:NYMT) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for Cherry Hill Mortgage Investment and New York Mortgage Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cherry Hill Mortgage Investment||0||0||3||0||3.00|
|New York Mortgage Trust||0||4||1||0||2.20|
Earnings and Valuation
This table compares Cherry Hill Mortgage Investment and New York Mortgage Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cherry Hill Mortgage Investment||$30.72 million||6.93||$24.83 million||$6.73||2.49|
|New York Mortgage Trust||$441.10 million||1.53||$91.98 million||$0.66||9.09|
New York Mortgage Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Cherry Hill Mortgage Investment and New York Mortgage Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cherry Hill Mortgage Investment||136.70%||9.49%||1.58%|
|New York Mortgage Trust||22.10%||13.38%||0.85%|
Volatility & Risk
Cherry Hill Mortgage Investment has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 11.7%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 13.3%. Cherry Hill Mortgage Investment pays out 29.1% of its earnings in the form of a dividend. New York Mortgage Trust pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
51.9% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 39.0% of New York Mortgage Trust shares are owned by institutional investors. 8.9% of Cherry Hill Mortgage Investment shares are owned by company insiders. Comparatively, 1.3% of New York Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Cherry Hill Mortgage Investment beats New York Mortgage Trust on 10 of the 16 factors compared between the two stocks.
About Cherry Hill Mortgage Investment
Cherry Hill Mortgage Investment Corporation is a residential real estate finance company. The Company is focused on acquiring, investing in and managing residential mortgage assets in the United States. Its principal objective is to generate attractive current yields and risk-adjusted total returns for its stockholders over the long term, primarily through dividend distributions and secondarily through capital appreciation. The Company focuses on attaining this objective, subject to market conditions and availability and terms of financing, by selectively constructing and managing a targeted portfolio of Servicing Related Assets, residential mortgage-backed securities (RMBS), prime mortgage loans and other cashflowing residential mortgage assets. The Company operates its business through segments, including investments in RMBS; investments in Servicing Related Assets, and All Other. The Company is externally managed by Cherry Hill Mortgage Management, LLC.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. The Company’s investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets, non-agency residential mortgage-backed securities (RMBS), multi-family commercial mortgage-backed securities, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate and agency RMBS. It may acquire and manage various other types of mortgage-related and financial assets, including, without limitation, collateralized mortgage obligations and securities issued by newly originated residential securitizations, including credit sensitive securities from these securitizations.
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