Retail Opportunity Investments (NASDAQ:ROIC) and CHIMERA INVT CO/SH NEW (NYSE:CIM) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
95.8% of Retail Opportunity Investments shares are owned by institutional investors. Comparatively, 51.5% of CHIMERA INVT CO/SH NEW shares are owned by institutional investors. 2.5% of Retail Opportunity Investments shares are owned by company insiders. Comparatively, 0.8% of CHIMERA INVT CO/SH NEW shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and price targets for Retail Opportunity Investments and CHIMERA INVT CO/SH NEW, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Retail Opportunity Investments||0||1||2||0||2.67|
|CHIMERA INVT CO/SH NEW||0||2||2||0||2.50|
Retail Opportunity Investments presently has a consensus price target of $19.50, suggesting a potential upside of 6.09%. CHIMERA INVT CO/SH NEW has a consensus price target of $20.17, suggesting a potential upside of 0.13%. Given Retail Opportunity Investments’ stronger consensus rating and higher possible upside, research analysts plainly believe Retail Opportunity Investments is more favorable than CHIMERA INVT CO/SH NEW.
Retail Opportunity Investments pays an annual dividend of $0.79 per share and has a dividend yield of 4.3%. CHIMERA INVT CO/SH NEW pays an annual dividend of $2.00 per share and has a dividend yield of 9.9%. Retail Opportunity Investments pays out 69.3% of its earnings in the form of a dividend. CHIMERA INVT CO/SH NEW pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk & Volatility
Retail Opportunity Investments has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, CHIMERA INVT CO/SH NEW has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares Retail Opportunity Investments and CHIMERA INVT CO/SH NEW’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Retail Opportunity Investments||$295.80 million||7.21||$42.73 million||$1.14||16.12|
|CHIMERA INVT CO/SH NEW||$1.27 billion||2.96||$411.64 million||$2.34||8.61|
CHIMERA INVT CO/SH NEW has higher revenue and earnings than Retail Opportunity Investments. CHIMERA INVT CO/SH NEW is trading at a lower price-to-earnings ratio than Retail Opportunity Investments, indicating that it is currently the more affordable of the two stocks.
This table compares Retail Opportunity Investments and CHIMERA INVT CO/SH NEW’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Retail Opportunity Investments||16.59%||3.81%||1.65%|
|CHIMERA INVT CO/SH NEW||13.14%||12.22%||1.68%|
Retail Opportunity Investments beats CHIMERA INVT CO/SH NEW on 9 of the 15 factors compared between the two stocks.
Retail Opportunity Investments Company Profile
Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully-integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely-populated, metropolitan markets across the West Coast. As of March 31, 2019, ROIC owned 90 shopping centers encompassing approximately 10.3 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services and Standard & Poor's.
CHIMERA INVT CO/SH NEW Company Profile
Chimera Investment Corporation operates as a real estate investment trust in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a real estate investment trust. As a result, the company would not be subject to U.S. federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. Chimera Investment Corporation was founded in 2007 and is headquartered in New York, New York.
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