Chimera Investment (NYSE:CIM – Get Free Report) and Angel Oak Mortgage REIT (NYSE:AOMR – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.
Dividends
Chimera Investment pays an annual dividend of $1.80 per share and has a dividend yield of 13.2%. Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 15.5%. Chimera Investment pays out -225.0% of its earnings in the form of a dividend. Angel Oak Mortgage REIT pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chimera Investment has raised its dividend for 1 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Chimera Investment and Angel Oak Mortgage REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chimera Investment | 1 | 2 | 1 | 0 | 2.00 |
| Angel Oak Mortgage REIT | 1 | 2 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
48.4% of Chimera Investment shares are owned by institutional investors. Comparatively, 80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. 1.5% of Chimera Investment shares are owned by company insiders. Comparatively, 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk and Volatility
Chimera Investment has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.
Profitability
This table compares Chimera Investment and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chimera Investment | 2.27% | 9.36% | 1.55% |
| Angel Oak Mortgage REIT | 10.64% | 5.25% | 0.50% |
Earnings & Valuation
This table compares Chimera Investment and Angel Oak Mortgage REIT”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chimera Investment | $821.34 million | 1.39 | $230.50 million | ($0.80) | -17.02 |
| Angel Oak Mortgage REIT | $143.65 million | 1.43 | $44.02 million | $0.64 | 12.90 |
Chimera Investment has higher revenue and earnings than Angel Oak Mortgage REIT. Chimera Investment is trading at a lower price-to-earnings ratio than Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.
Summary
Angel Oak Mortgage REIT beats Chimera Investment on 8 of the 15 factors compared between the two stocks.
About Chimera Investment
Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.
About Angel Oak Mortgage REIT
Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.
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