Head to Head Comparison: Cherry Hill Mortgage Investment (NYSE:CHMI) and Weyerhaeuser (NYSE:WY)

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

Earnings & Valuation

This table compares Cherry Hill Mortgage Investment and Weyerhaeuser’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	$49.99 million	2.18	-$34.79 million	($0.51)	-7.12
Weyerhaeuser	$7.67 billion	2.70	$839.00 million	$1.10	25.81

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

Analyst Ratings

This is a summary of recent ratings and price targets for Cherry Hill Mortgage Investment and Weyerhaeuser, 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
Weyerhaeuser	0	4	2	0	2.33

Cherry Hill Mortgage Investment currently has a consensus target price of $5.00, indicating a potential upside of 37.74%. Weyerhaeuser has a consensus target price of $37.67, indicating a potential upside of 32.68%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Weyerhaeuser.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 16.5%. Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Weyerhaeuser pays out 72.7% 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. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cherry Hill Mortgage Investment	-6.85%	18.98%	1.92%
Weyerhaeuser	10.57%	7.00%	4.14%

Institutional and Insider Ownership

18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are held by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are held by company insiders. Comparatively, 0.3% of Weyerhaeuser shares are held 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.

Volatility & Risk

Cherry Hill Mortgage Investment has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

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. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company 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 incorporated in 2012 and is based in Farmingdale, New Jersey.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.