Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) and Chatham Lodging Trust (NYSE:CLDT – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Cherry Hill Mortgage Investment and Chatham Lodging Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cherry Hill Mortgage Investment | 0 | 1 | 1 | 0 | 2.50 |
| Chatham Lodging Trust | 0 | 0 | 1 | 0 | 3.00 |
Cherry Hill Mortgage Investment currently has a consensus price target of $5.00, suggesting a potential upside of 47.71%. Chatham Lodging Trust has a consensus price target of $12.00, suggesting a potential upside of 46.34%. Given Cherry Hill Mortgage Investment’s higher possible upside, research analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Chatham Lodging Trust.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Cherry Hill Mortgage Investment | -8.28% | 16.36% | 1.62% |
| Chatham Lodging Trust | -0.01% | N/A | N/A |
Earnings & Valuation
This table compares Cherry Hill Mortgage Investment and Chatham Lodging Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cherry Hill Mortgage Investment | $12.56 million | 8.09 | -$34.79 million | ($0.51) | -6.64 |
| Chatham Lodging Trust | $313.94 million | 1.28 | $2.64 million | ($0.12) | -68.33 |
Chatham Lodging Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than Cherry Hill Mortgage Investment, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Cherry Hill Mortgage Investment has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.
Dividends
Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 17.7%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.4%. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Chatham Lodging Trust pays out -233.3% 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.
Institutional and Insider Ownership
18.5% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are owned by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are owned by company insiders. Comparatively, 6.5% of Chatham Lodging Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Chatham Lodging Trust beats Cherry Hill Mortgage Investment on 9 of the 15 factors compared between the two stocks.
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 Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.
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