Spirit MTA REIT (NYSE:SMTA) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings for Spirit MTA REIT and Cherry Hill Mortgage Investment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit MTA REIT 0 0 0 0 N/A
Cherry Hill Mortgage Investment 0 0 2 0 3.00

Cherry Hill Mortgage Investment has a consensus price target of $15.50, suggesting a potential upside of 1.77%. Given Cherry Hill Mortgage Investment’s higher possible upside, analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Spirit MTA REIT.

Profitability

This table compares Spirit MTA REIT and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit MTA REIT -116.17% N/A -15.65%
Cherry Hill Mortgage Investment -127.14% 13.19% 1.57%

Institutional & Insider Ownership

73.6% of Spirit MTA REIT shares are held by institutional investors. Comparatively, 51.6% of Cherry Hill Mortgage Investment shares are held by institutional investors. 0.8% of Spirit MTA REIT shares are held by insiders. Comparatively, 1.0% of Cherry Hill Mortgage Investment shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Spirit MTA REIT and Cherry Hill Mortgage Investment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit MTA REIT $246.31 million 0.13 -$220.24 million N/A N/A
Cherry Hill Mortgage Investment $57.72 million 4.46 $37.28 million $2.25 6.77

Cherry Hill Mortgage Investment has lower revenue, but higher earnings than Spirit MTA REIT.

Risk & Volatility

Spirit MTA REIT has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Summary

Cherry Hill Mortgage Investment beats Spirit MTA REIT on 7 of the 11 factors compared between the two stocks.

Spirit MTA REIT Company Profile

Spirit MTA REIT (NYSE: SMTA) is a net-lease REIT headquartered in Dallas, Texas. SMTA owns one of the largest, most diversified and seasoned commercial real estate backed master funding vehicles. SMTA is managed by Spirit Realty, L.P., a wholly-owned subsidiary of Spirit (NYSE: SRC), one of the largest publicly traded triple net-lease REITs. As of December 31, 2018, our diversified portfolio was comprised of 876 properties, including properties securing mortgage loans made by the Company. Our properties, with an aggregate gross leasable area of approximately 19.8 million square feet, are leased to approximately 203 tenants across 45 states and 23 industries.

Cherry Hill Mortgage Investment Company Profile

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Investments in RMBS and Investments in Servicing Related Assets segments. It manages a portfolio of servicing related assets, residential mortgage-backed securities (RMBS), and prime residential mortgage loans, as well as other residential mortgage assets. 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. Cherry Hill Mortgage Investment Corporation was founded in 2012 and is based in Farmingdale, New Jersey.

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