Chimera Investment (NYSE: CIM) and New York Mortgage Trust (NASDAQ:NYMT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
This is a breakdown of recent ratings for Chimera Investment and New York Mortgage Trust, as reported by MarketBeat.
||Strong Buy Ratings
|New York Mortgage Trust
Chimera Investment currently has a consensus target price of $18.75, indicating a potential upside of 6.29%. New York Mortgage Trust has a consensus target price of $6.19, indicating a potential upside of 8.17%. Given New York Mortgage Trust’s higher probable upside, analysts clearly believe New York Mortgage Trust is more favorable than Chimera Investment.
Chimera Investment pays an annual dividend of $2.00 per share and has a dividend yield of 11.3%. New York Mortgage Trust pays an annual dividend of $0.80 per share and has a dividend yield of 14.0%. Chimera Investment pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Mortgage Trust pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chimera Investment has raised its dividend for 3 consecutive years.
This table compares Chimera Investment and New York Mortgage Trust’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|New York Mortgage Trust
Volatility & Risk
Chimera Investment has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, New York Mortgage Trust has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Earnings and Valuation
This table compares Chimera Investment and New York Mortgage Trust’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
|New York Mortgage Trust
Chimera Investment has higher revenue and earnings than New York Mortgage Trust. Chimera Investment is trading at a lower price-to-earnings ratio than New York Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
50.0% of Chimera Investment shares are held by institutional investors. Comparatively, 38.1% of New York Mortgage Trust shares are held by institutional investors. 0.7% of Chimera Investment shares are held by company insiders. Comparatively, 1.3% of New York Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Chimera Investment beats New York Mortgage Trust on 12 of the 17 factors compared between the two stocks.
About Chimera Investment
Chimera Investment Corporation is a real estate investment trust (REIT). The company is engaged in the business of investing in a portfolio of mortgage assets, including agency residential mortgage-backed security (RMBS), non-agency RMBS, agency commercial mortgage-backed securities (CMBS), residential mortgage loans and real estate related securities. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses to achieve this objective by investing in an investment portfolio of RMBS, agency CMBS, residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. The MBS and real estate-related securities the Company purchases include investment-grade and non-investment grade classes, including the BB-rated, B-rated and non-rated classes. It also invests in investment grade and non-investment grade RMBS.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of acquiring, investing in, financing and managing primarily mortgage-related assets and financial assets. The Company’s investment portfolio includes residential mortgage loans, including second mortgages and loans sourced from distressed markets, non-agency residential mortgage-backed securities (RMBS), multi-family commercial mortgage-backed securities, preferred equity and joint venture equity investments in, and mezzanine loans to, owners of multi-family properties, equity and debt securities issued by entities that invest in residential and commercial real estate and agency RMBS. It may acquire and manage various other types of mortgage-related and financial assets, including, without limitation, collateralized mortgage obligations and securities issued by newly originated residential securitizations, including credit sensitive securities from these securitizations.
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