Head to Head Contrast: Cherry Hill Mortgage Investment (NYSE:CHMI) and Columbia Property Trust (NYSE:CXP)

Cherry Hill Mortgage Investment (NYSE:CHMI) and Columbia Property Trust (NYSE:CXP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Cherry Hill Mortgage Investment and Columbia Property Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment 0 2 1 0 2.33
Columbia Property Trust 0 4 1 0 2.20

Cherry Hill Mortgage Investment currently has a consensus target price of $10.50, indicating a potential upside of 15.64%. Columbia Property Trust has a consensus target price of $17.01, indicating a potential downside of 10.85%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Columbia Property Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
Cherry Hill Mortgage Investment 56.76% 17.49% 2.18%
Columbia Property Trust 36.27% 3.74% 2.39%

Insider and Institutional Ownership

31.1% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 76.0% of Columbia Property Trust shares are owned by institutional investors. 1.2% of Cherry Hill Mortgage Investment shares are owned by insiders. Comparatively, 0.8% of Columbia Property Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $1.08 per share and has a dividend yield of 11.9%. Columbia Property Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.4%. Cherry Hill Mortgage Investment pays out 60.7% of its earnings in the form of a dividend. Columbia Property Trust pays out 55.3% 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.

Earnings and Valuation

This table compares Cherry Hill Mortgage Investment and Columbia Property Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cherry Hill Mortgage Investment $49.02 million 3.17 -$52.24 million $1.78 5.10
Columbia Property Trust $300.57 million 7.29 $115.71 million $1.52 12.55

Columbia Property 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 Columbia Property Trust, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cherry Hill Mortgage Investment has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Columbia Property Trust has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Columbia Property Trust beats Cherry Hill Mortgage Investment on 8 of the 15 factors compared between the two stocks.

About Cherry Hill Mortgage Investment

Cherry Hill Mortgage Investment Corp. is a real estate finance company, which acquires, invests in and manages a portfolio of excess mortgage servicing rights. The company operates through the following segments: Investments in RMBS, Investments in Servicing Related Assets and All Other segment. It also invests in agency residential mortgage backed securities, prime jumbo mortgage loans and other residential mortgage assets. The company was founded on October 31, 2012 and is headquartered in Farmingdale, NJ.

About Columbia Property Trust

Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings concentrated in New York, San Francisco, and Washington, D.C. Its portfolio includes 19 properties with approximately nine million square feet. Columbia carries an investment-grade rating from both Moody's and Standard & Poor's.

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