Financial Comparison: Cherry Hill Mortgage Investment (NYSE:CHMI) versus Sabra Health Care REIT (NASDAQ:SBRA)

Cherry Hill Mortgage Investment (NYSE:CHMI) and Sabra Health Care REIT (NASDAQ:SBRA) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation and Earnings

This table compares Cherry Hill Mortgage Investment and Sabra Health Care REIT’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cherry Hill Mortgage Investment	$49.99 million	2.08	-$34.79 million	($1.70)	-2.04
Sabra Health Care REIT	$647.51 million	5.27	$13.76 million	$0.05	294.80

Sabra Health Care REIT has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Sabra Health Care REIT, indicating that it is currently the more affordable of the two stocks.

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 17.3%. Sabra Health Care REIT pays an annual dividend of $1.20 per share and has a dividend yield of 8.1%. Cherry Hill Mortgage Investment pays out -35.3% of its earnings in the form of a dividend. Sabra Health Care REIT pays out 2,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Health Care REIT has increased its dividend for 2 consecutive years. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Cherry Hill Mortgage Investment and Sabra Health Care REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cherry Hill Mortgage Investment	-69.00%	19.65%	1.99%
Sabra Health Care REIT	2.12%	0.47%	0.25%

Volatility and Risk

Cherry Hill Mortgage Investment has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Sabra Health Care REIT has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. Comparatively, 99.4% of Sabra Health Care REIT shares are held by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are held by company insiders. Comparatively, 1.0% of Sabra Health Care REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Cherry Hill Mortgage Investment and Sabra Health Care REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cherry Hill Mortgage Investment	0	0	2	0	3.00
Sabra Health Care REIT	0	4	6	0	2.60

Cherry Hill Mortgage Investment presently has a consensus price target of $5.00, suggesting a potential upside of 44.09%. Sabra Health Care REIT has a consensus price target of $15.77, suggesting a potential upside of 7.01%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Sabra Health Care REIT.

Summary

Sabra Health Care REIT beats Cherry Hill Mortgage Investment on 9 of the 17 factors compared between the two stocks.

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.

About Sabra Health Care REIT

As of September 30, 2023, Sabra's investment portfolio included 377 real estate properties held for investment (consisting of (i) 240 Skilled Nursing/Transitional Care facilities, (ii) 43 senior housing communities (Senior Housing – Leased), (iii) 61 senior housing communities operated by third-party property managers pursuant to property management agreements (Senior Housing – Managed), (iv) 18 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), 12 investments in loans receivable (consisting of two mortgage loans and 10 other loans), five preferred equity investments and two investments in unconsolidated joint ventures. As of September 30, 2023, Sabra's real estate properties held for investment included 37,606 beds/units, spread across the United States and Canada.