Chimera Investment (NYSE: CIM) and AG Mortgage Investment Trust (NYSE:MITT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Valuation & Earnings
This table compares Chimera Investment and AG Mortgage Investment Trust’s revenue, earnings per share (EPS) and valuation.
Chimera Investment has higher revenue and earnings than AG Mortgage Investment Trust. AG Mortgage Investment Trust is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Chimera Investment has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Chimera Investment pays an annual dividend of $2.00 per share and has a dividend yield of 11.6%. AG Mortgage Investment Trust pays an annual dividend of $1.90 per share and has a dividend yield of 11.0%. 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. AG Mortgage Investment Trust pays out 50.5% of its earnings in the form of a dividend. AG Mortgage Investment Trust has increased its dividend for 3 consecutive years.
Institutional and Insider Ownership
49.1% of Chimera Investment shares are owned by institutional investors. Comparatively, 65.1% of AG Mortgage Investment Trust shares are owned by institutional investors. 0.7% of Chimera Investment shares are owned by company insiders. Comparatively, 1.6% of AG Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of recent recommendations and price targets for Chimera Investment and AG Mortgage Investment Trust, as provided by MarketBeat.com.
Chimera Investment presently has a consensus price target of $18.75, indicating a potential upside of 8.70%. AG Mortgage Investment Trust has a consensus price target of $18.25, indicating a potential upside of 5.67%. Given Chimera Investment’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chimera Investment is more favorable than AG Mortgage Investment Trust.
This table compares Chimera Investment and AG Mortgage Investment Trust’s net margins, return on equity and return on assets.
AG Mortgage Investment Trust beats Chimera Investment on 9 of the 17 factors compared between the two stocks.
Chimera Investment Company Profile
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.
AG Mortgage Investment Trust Company Profile
AG Mortgage Investment Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets, which the Company refers to as its target assets. It also focuses on investing in residential mortgage-backed securities (RMBS) issued or guaranteed by a government-sponsored enterprise, such as The Federal National Mortgage Association (Fannie Mae) or The Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, GSEs), or any agency of the United States Government, such as The Government National Mortgage Association (Ginnie Mae) (collectively Agency RMBS), and other real estate-related securities and financial assets, including Non-Agency RMBS, asset backed securities (ABS), commercial mortgage-backed securities (CMBS) and loans.