Head to Head Survey: Greystone Housing Impact Investors (NYSE:GHI) & Cannae (NYSE:CNNE)

Cannae (NYSE:CNNE) and Greystone Housing Impact Investors (NYSE:GHI) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Risk and Volatility

Cannae has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Greystone Housing Impact Investors has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

88.1% of Cannae shares are owned by institutional investors. Comparatively, 9.0% of Greystone Housing Impact Investors shares are owned by institutional investors. 10.9% of Cannae shares are owned by insiders. Comparatively, 1.8% of Greystone Housing Impact Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 3.9%. Greystone Housing Impact Investors pays an annual dividend of $0.56 per share and has a dividend yield of 9.7%. Cannae pays out -19.9% of its earnings in the form of a dividend. Greystone Housing Impact Investors pays out -233.3% 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. Greystone Housing Impact Investors has increased its dividend for 4 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cannae and Greystone Housing Impact Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannae	-38.18%	-14.10%	-10.60%
Greystone Housing Impact Investors	-1.03%	3.72%	0.70%

Valuation & Earnings

This table compares Cannae and Greystone Housing Impact Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannae	$408.60 million	1.65	-$513.20 million	($3.02)	-5.15
Greystone Housing Impact Investors	$85.39 million	1.60	-$7.61 million	($0.24)	-24.17

Greystone Housing Impact Investors has lower revenue, but higher earnings than Cannae. Greystone Housing Impact Investors is trading at a lower price-to-earnings ratio than Cannae, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cannae and Greystone Housing Impact Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannae	1	1	2	0	2.25
Greystone Housing Impact Investors	1	1	1	0	2.00

Cannae presently has a consensus target price of $16.50, suggesting a potential upside of 6.03%. Greystone Housing Impact Investors has a consensus target price of $9.50, suggesting a potential upside of 63.79%. Given Greystone Housing Impact Investors’ higher possible upside, analysts clearly believe Greystone Housing Impact Investors is more favorable than Cannae.

Summary

Greystone Housing Impact Investors beats Cannae on 9 of the 17 factors compared between the two stocks.

About Cannae

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.