Analyzing Chimera Investment Corporation (CIM) & Its Rivals
Chimera Investment Corporation (NYSE: CIM) is one of 38 publicly-traded companies in the “Mortgage REITs” industry, but how does it compare to its peers? We will compare Chimera Investment Corporation to similar businesses based on the strength of its dividends, institutional ownership, valuation, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
52.2% of Chimera Investment Corporation shares are owned by institutional investors. Comparatively, 58.1% of shares of all “Mortgage REITs” companies are owned by institutional investors. 0.7% of Chimera Investment Corporation shares are owned by insiders. Comparatively, 3.3% of shares of all “Mortgage REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Chimera Investment Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chimera Investment Corporation||63.94%||14.27%||2.52%|
|Chimera Investment Corporation Competitors||49.09%||10.64%||2.78%|
Chimera Investment Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 10.5%. Chimera Investment Corporation pays out 57.3% of its earnings in the form of a dividend. As a group, “Mortgage REITs” companies pay a dividend yield of 10.2% and pay out 80.6% of their earnings in the form of a dividend. Chimera Investment Corporation has increased its dividend for 2 consecutive years. Chimera Investment Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Chimera Investment Corporation and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Chimera Investment Corporation||$933.35 million||N/A||5.47|
|Chimera Investment Corporation Competitors||$320.94 million||$123.24 million||1.59|
Chimera Investment Corporation has higher revenue, but lower earnings than its peers. Chimera Investment Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk & Volatility
Chimera Investment Corporation has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Chimera Investment Corporation’s peers have a beta of 0.72, meaning that their average stock price is 28% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Chimera Investment Corporation and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chimera Investment Corporation||0||3||0||0||2.00|
|Chimera Investment Corporation Competitors||199||1033||914||41||2.36|
Chimera Investment Corporation currently has a consensus price target of $18.50, suggesting a potential downside of 3.09%. As a group, “Mortgage REITs” companies have a potential upside of 4.02%. Given Chimera Investment Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Chimera Investment Corporation has less favorable growth aspects than its peers.
Chimera Investment Corporation Company Profile
Chimera Investment Corporation is a real estate investment trust (REIT). The company is engaged in the business of investing in a portfolio of mortgage assets, including agency residential mortgage-backed security (RMBS), non-agency RMBS, agency commercial mortgage-backed securities (CMBS), residential mortgage loans and real estate related securities. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses to achieve this objective by investing in an investment portfolio of RMBS, agency CMBS, residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. The MBS and real estate-related securities the Company purchases include investment-grade and non-investment grade classes, including the BB-rated, B-rated and non-rated classes. It also invests in investment grade and non-investment grade RMBS.
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