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

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 11.3%. EPR Properties pays an annual dividend of $4.50 per share and has a dividend yield of 5.7%. 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. EPR Properties pays out 73.8% of its earnings in the form of a dividend. EPR Properties has raised its dividend for 8 consecutive years.

Risk and Volatility

Cherry Hill Mortgage Investment has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cherry Hill Mortgage Investment and EPR Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cherry Hill Mortgage Investment $57.72 million 5.00 $37.28 million $2.25 7.70
EPR Properties $700.73 million 8.48 $266.98 million $6.10 12.90

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

Insider & Institutional Ownership

59.1% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 83.8% of EPR Properties shares are held by institutional investors. 1.0% of Cherry Hill Mortgage Investment shares are held by company insiders. Comparatively, 1.3% of EPR Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Cherry Hill Mortgage Investment and EPR Properties’ 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%
EPR Properties 42.63% 10.81% 5.04%

Analyst Ratings

This is a summary of recent ratings for Cherry Hill Mortgage Investment and EPR Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment 0 0 2 0 3.00
EPR Properties 0 4 2 0 2.33

Cherry Hill Mortgage Investment currently has a consensus target price of $19.50, indicating a potential upside of 12.52%. EPR Properties has a consensus target price of $74.90, indicating a potential downside of 4.80%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher probable upside, research analysts plainly believe Cherry Hill Mortgage Investment is more favorable than EPR Properties.

Summary

EPR Properties beats Cherry Hill Mortgage Investment on 12 of the 16 factors compared between the two stocks.

Cherry Hill Mortgage Investment Company Profile

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.

EPR Properties Company Profile

EPR Properties is a specialty real estate investment trust (REIT) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. Our total investments exceed $6.7 billion and our primary investment segments are Entertainment, Recreation and Education. We adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields.

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