CIM vs. RC, ARI, TWO, PMT, MFA, ARR, RWT, DX, NYMT, and IVR
Should you be buying Chimera Investment stock or one of its competitors? The main competitors of Chimera Investment include Ready Capital (RC), Apollo Commercial Real Estate Finance (ARI), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), ARMOUR Residential REIT (ARR), Redwood Trust (RWT), Dynex Capital (DX), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Chimera Investment (NYSE:CIM) and Ready Capital (NYSE:RC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, media sentiment, profitability, valuation, institutional ownership, dividends, community ranking, risk and analyst recommendations.
Chimera Investment received 165 more outperform votes than Ready Capital when rated by MarketBeat users. However, 61.06% of users gave Ready Capital an outperform vote while only 57.87% of users gave Chimera Investment an outperform vote.
Chimera Investment has a net margin of 25.73% compared to Ready Capital's net margin of 23.81%. Ready Capital's return on equity of 8.11% beat Chimera Investment's return on equity.
Chimera Investment pays an annual dividend of $1.40 per share and has a dividend yield of 9.3%. Ready Capital pays an annual dividend of $1.20 per share and has a dividend yield of 12.9%. Chimera Investment pays out 91.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ready Capital pays out 74.5% of its earnings in the form of a dividend. Ready Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Ready Capital had 2 more articles in the media than Chimera Investment. MarketBeat recorded 4 mentions for Ready Capital and 2 mentions for Chimera Investment. Ready Capital's average media sentiment score of 0.67 beat Chimera Investment's score of -0.33 indicating that Ready Capital is being referred to more favorably in the news media.
Chimera Investment has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Ready Capital has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.
Ready Capital has higher revenue and earnings than Chimera Investment. Ready Capital is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
48.4% of Chimera Investment shares are owned by institutional investors. Comparatively, 55.9% of Ready Capital shares are owned by institutional investors. 0.9% of Chimera Investment shares are owned by company insiders. Comparatively, 1.1% of Ready Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Chimera Investment presently has a consensus target price of $15.75, suggesting a potential upside of 5.00%. Ready Capital has a consensus target price of $10.93, suggesting a potential upside of 17.26%. Given Ready Capital's higher probable upside, analysts plainly believe Ready Capital is more favorable than Chimera Investment.
Summary
Ready Capital beats Chimera Investment on 15 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CIM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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