Financial Review: Cherry Hill Mortgage Investment (CHMI) versus Apple Hospitality REIT (APLE)
Cherry Hill Mortgage Investment (NYSE: APLE) and Apple Hospitality REIT (NYSE:APLE) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Institutional & Insider Ownership
56.2% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 56.6% of Apple Hospitality REIT shares are owned by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are owned by company insiders. Comparatively, 6.3% of Apple Hospitality REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Cherry Hill Mortgage Investment and Apple Hospitality REIT, 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|
|Apple Hospitality REIT||0||1||2||0||2.67|
Cherry Hill Mortgage Investment currently has a consensus target price of $19.25, suggesting a potential upside of 3.83%. Apple Hospitality REIT has a consensus target price of $20.00, suggesting a potential upside of 14.74%. Given Apple Hospitality REIT’s higher probable upside, analysts clearly believe Apple Hospitality REIT is more favorable than Cherry Hill Mortgage Investment.
Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 10.6%. Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.9%. Cherry Hill Mortgage Investment pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apple Hospitality REIT pays out 69.0% of its earnings in the form of a dividend.
This table compares Cherry Hill Mortgage Investment and Apple Hospitality REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cherry Hill Mortgage Investment||147.31%||10.42%||1.41%|
|Apple Hospitality REIT||13.55%||4.80%||3.44%|
Volatility & Risk
Cherry Hill Mortgage Investment has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
Earnings and Valuation
This table compares Cherry Hill Mortgage Investment and Apple Hospitality REIT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cherry Hill Mortgage Investment||$42.05 million||6.98||$47.35 million||$2.22||8.35|
|Apple Hospitality REIT||$1.24 billion||3.24||$182.49 million||$1.74||10.02|
Apple Hospitality REIT has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.
Apple Hospitality REIT beats Cherry Hill Mortgage Investment on 9 of the 16 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 Apple Hospitality REIT
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, select-service hotels in the United States. Apple Hospitality's portfolio consists of 241 hotels with more than 30,700 guest rooms located in 88 markets throughout 34 states. Franchised with industry-leading brands, the Company's portfolio comprises 115 Marriott-branded hotels and 126 Hilton-branded hotels.
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