Chatham Lodging Trust (NYSE:CLDT – Get Free Report) and Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Profitability
This table compares Chatham Lodging Trust and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chatham Lodging Trust | -0.01% | N/A | N/A |
| Cherry Hill Mortgage Investment | -8.28% | 16.36% | 1.62% |
Analyst Recommendations
This is a breakdown of current recommendations for Chatham Lodging Trust and Cherry Hill Mortgage Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chatham Lodging Trust | 0 | 0 | 1 | 0 | 3.00 |
| Cherry Hill Mortgage Investment | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.4%. Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 17.7%. Chatham Lodging Trust pays out -233.3% of its earnings in the form of a dividend. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional and Insider Ownership
88.4% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 6.5% of Chatham Lodging Trust shares are held by insiders. Comparatively, 1.1% of Cherry Hill Mortgage Investment shares are held 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.
Valuation and Earnings
This table compares Chatham Lodging Trust and Cherry Hill Mortgage Investment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chatham Lodging Trust | $313.94 million | 1.28 | $2.64 million | ($0.12) | -68.33 |
| Cherry Hill Mortgage Investment | $12.56 million | 8.09 | -$34.79 million | ($0.51) | -6.64 |
Chatham Lodging Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than Cherry Hill Mortgage Investment, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Chatham Lodging Trust has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Summary
Chatham Lodging Trust beats Cherry Hill Mortgage Investment on 9 of the 15 factors compared between the two stocks.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.
About Cherry Hill Mortgage Investment
Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company 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 incorporated in 2012 and is based in Farmingdale, New Jersey.
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