Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) and Equity Commonwealth (NYSE:EQC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Volatility & Risk
Cherry Hill Mortgage Investment has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Equity Commonwealth has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
Valuation & Earnings
This table compares Cherry Hill Mortgage Investment and Equity Commonwealth”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cherry Hill Mortgage Investment | $49.99 million | 1.91 | -$34.79 million | ($1.52) | -1.99 |
| Equity Commonwealth | $60.52 million | 3.04 | $91.16 million | $0.39 | 4.40 |
Profitability
This table compares Cherry Hill Mortgage Investment and Equity Commonwealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cherry Hill Mortgage Investment | -60.97% | 15.18% | 1.45% |
| Equity Commonwealth | 82.00% | 2.09% | 1.96% |
Institutional & Insider Ownership
18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 96.0% of Equity Commonwealth shares are held by institutional investors. 1.4% of Cherry Hill Mortgage Investment shares are held by company insiders. Comparatively, 2.1% of Equity Commonwealth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Cherry Hill Mortgage Investment and Equity Commonwealth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cherry Hill Mortgage Investment | 0 | 1 | 1 | 1 | 3.00 |
| Equity Commonwealth | 0 | 0 | 0 | 0 | 0.00 |
Cherry Hill Mortgage Investment presently has a consensus price target of $4.50, suggesting a potential upside of 48.76%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Equity Commonwealth.
Summary
Equity Commonwealth 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 Equity Commonwealth
Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.
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