Head-To-Head Analysis: Cherry Hill Mortgage Investment (CHMI) and Four Corners Property Trust (FCPT)

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

Risk and Volatility

Cherry Hill Mortgage Investment has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $1.96 per share and has a dividend yield of 10.9%. Four Corners Property Trust pays an annual dividend of $1.10 per share and has a dividend yield of 4.2%. 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. Four Corners Property Trust pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

56.2% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 88.6% of Four Corners Property Trust shares are owned by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are owned by company insiders. Comparatively, 0.3% of Four Corners Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cherry Hill Mortgage Investment and Four Corners Property Trust’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%
Four Corners Property Trust 59.38% 14.59% 7.21%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cherry Hill Mortgage Investment and Four Corners Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment 0 0 2 0 3.00
Four Corners Property Trust 0 1 0 0 2.00

Cherry Hill Mortgage Investment currently has a consensus price target of $19.00, indicating a potential upside of 6.15%. Four Corners Property Trust has a consensus price target of $26.00, indicating a potential upside of 0.23%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Four Corners Property Trust.

Valuation & Earnings

This table compares Cherry Hill Mortgage Investment and Four Corners Property Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cherry Hill Mortgage Investment $42.05 million 6.73 $47.35 million $2.22 8.06
Four Corners Property Trust $133.21 million 12.25 $71.39 million $1.36 19.07

Four Corners 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 Four Corners Property Trust, indicating that it is currently the more affordable of 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.

Four Corners Property Trust Company Profile

FCPT is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease for use in the restaurant and related food services industry.

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