Head-To-Head Comparison: Chimera Investment (CIM) versus Its Peers

Chimera Investment (NYSE:CIM) is one of 52 publicly-traded companies in the “Mortgage Real Estate Investment Trusts (REITs)” industry, but how does it contrast to its peers? We will compare Chimera Investment to similar businesses based on the strength of its valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Institutional & Insider Ownership

48.4% of Chimera Investment shares are owned by institutional investors. Comparatively, 52.3% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are owned by institutional investors. 1.8% of Chimera Investment shares are owned by insiders. Comparatively, 4.8% of shares of all “Mortgage Real Estate Investment Trusts (REITs)” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Chimera Investment pays an annual dividend of $1.80 per share and has a dividend yield of 26.3%. Chimera Investment pays out -58.8% of its earnings in the form of a dividend. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies pay a dividend yield of 16.9% and pay out -102.0% of their earnings in the form of a dividend. Chimera Investment has raised its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Chimera Investment and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	1	2	1	0	2.00
Chimera Investment Competitors	690	1987	2137	136	2.35

Chimera Investment presently has a consensus target price of $13.67, indicating a potential upside of 99.95%. As a group, “Mortgage Real Estate Investment Trusts (REITs)” companies have a potential upside of 47.05%. Given Chimera Investment’s higher possible upside, analysts plainly believe Chimera Investment is more favorable than its peers.

Earnings & Valuation

This table compares Chimera Investment and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Chimera Investment	$821.34 million	$230.50 million	-2.23
Chimera Investment Competitors	$545.49 million	$157.00 million	18.92

Chimera Investment has higher revenue and earnings than its peers. Chimera Investment is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Chimera Investment has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Chimera Investment’s peers have a beta of 1.21, meaning that their average stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Chimera Investment and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	-19.11%	10.31%	1.54%
Chimera Investment Competitors	-13.10%	7.62%	1.04%

Summary

Chimera Investment peers beat Chimera Investment on 8 of the 15 factors compared.

About Chimera Investment

Chimera Investment Corporation is a real estate investment trust (REIT) focused on residential mortgage-related assets. Its investments include residential mortgage loans and residential mortgage-backed securities, as well as commercial mortgage loans and other real estate-related assets. The company seeks to generate income from these assets and may hold them directly or through securitized investments. Its activities are tied primarily to the U.S. mortgage and housing markets. Founded in 2007, Chimera is headquartered in New York.