Cherry Hill Mortgage Investment (NYSE:CHMI) and Klepierre (OTCMKTS:KLPEF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Cherry Hill Mortgage Investment has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Klepierre has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cherry Hill Mortgage Investment -29.80% 12.36% 1.70%
Klepierre N/A N/A N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cherry Hill Mortgage Investment and Klepierre, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment 0 0 2 0 3.00
Klepierre 0 1 0 0 2.00

Cherry Hill Mortgage Investment currently has a consensus price target of $19.50, indicating a potential upside of 17.47%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher probable upside, research analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Klepierre.

Earnings & Valuation

This table compares Cherry Hill Mortgage Investment and Klepierre’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cherry Hill Mortgage Investment $57.72 million 4.79 $37.28 million $2.25 7.38
Klepierre $1.32 billion 7.94 $990.74 million N/A N/A

Klepierre has higher revenue and earnings than Cherry Hill Mortgage Investment.

Insider & Institutional Ownership

59.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 1.0% of Cherry Hill Mortgage Investment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 11.8%. Klepierre does not pay a dividend. Cherry Hill Mortgage Investment pays out 87.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cherry Hill Mortgage Investment beats Klepierre on 8 of the 14 factors compared between the two stocks.

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. The company operates through Investments in RMBS and Investments in Servicing Related Assets segments. It manages a portfolio of servicing related assets, residential mortgage-backed securities (RMBS), and prime residential mortgage loans, as well as other residential mortgage assets. 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. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is based in Farmingdale, New Jersey.

About Klepierre

Klépierre, the pan-European leader in shopping malls, combines development, property and asset management skills. The company's portfolio is valued at €24.4 billion at December 31, 2018 and comprises large shopping centers in 16 countries in Continental Europe which together host 1.1 billion visitors per year. Klépierre holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager. Klépierre is a French REIT (SIIC) listed on Euronext Paris and included in the CAC Next 20, EPRA Euro Zone and GPR 250 indexes. It is also included in ethical indexes, such as DJSI World and Europe, FTSE4Good, STOXX® Global ESG Leaders, Euronext Vigeo France 20 and World 120, and figures in CDP's “A-list”. These distinctions underscore the Group's commitment to a proactive sustainable development policy and its global leadership in the fight against climate change.

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