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

Profitability

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

Net Margins Return on Equity Return on Assets
AG Mortgage Investment Trust 74.99% 11.21% 1.93%
Cherry Hill Mortgage Investment Corporation 138.90% 9.49% 1.81%

Dividends

AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 10.1%. Cherry Hill Mortgage Investment Corporation pays an annual dividend of $1.96 per share and has a dividend yield of 11.0%. AG Mortgage Investment Trust pays out 66.4% of its earnings in the form of a dividend. Cherry Hill Mortgage Investment Corporation pays out 28.1% 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. Cherry Hill Mortgage Investment Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for AG Mortgage Investment Trust and Cherry Hill Mortgage Investment Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AG Mortgage Investment Trust 0 3 0 0 2.00
Cherry Hill Mortgage Investment Corporation 0 1 2 0 2.67

AG Mortgage Investment Trust presently has a consensus target price of $18.17, suggesting a potential downside of 3.42%. Cherry Hill Mortgage Investment Corporation has a consensus target price of $19.17, suggesting a potential upside of 7.14%. Given Cherry Hill Mortgage Investment Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Cherry Hill Mortgage Investment Corporation is more favorable than AG Mortgage Investment Trust.

Risk and Volatility

AG Mortgage Investment Trust has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment Corporation has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Insider & Institutional Ownership

64.9% of AG Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 61.9% of Cherry Hill Mortgage Investment Corporation shares are owned by institutional investors. 1.6% of AG Mortgage Investment Trust shares are owned by insiders. Comparatively, 8.9% of Cherry Hill Mortgage Investment Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AG Mortgage Investment Trust and Cherry Hill Mortgage Investment Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
AG Mortgage Investment Trust $123.01 million 4.31 $63.68 million $2.86 6.58
Cherry Hill Mortgage Investment Corporation $30.72 million 7.40 $24.83 million $6.98 2.56

AG Mortgage Investment Trust has higher revenue and earnings than Cherry Hill Mortgage Investment Corporation. Cherry Hill Mortgage Investment Corporation is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Cherry Hill Mortgage Investment Corporation beats AG Mortgage Investment Trust on 9 of the 16 factors compared between the two stocks.

AG Mortgage Investment Trust Company Profile

AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.

Cherry Hill Mortgage Investment Corporation Company Profile

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.

Receive News & Ratings for AG Mortgage Investment Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AG Mortgage Investment Trust Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.