Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Dividends
Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 15.6%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.8%. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Modiv Industrial pays out -244.7% 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.
Risk & Volatility
Cherry Hill Mortgage Investment has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cherry Hill Mortgage Investment | $49.99 million | 2.30 | -$34.79 million | ($0.51) | -7.52 |
| Modiv Industrial | $46.94 million | 2.95 | -$6.61 million | ($0.47) | -31.19 |
Modiv Industrial has lower revenue, but higher earnings than Cherry Hill Mortgage Investment. Modiv Industrial 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for Cherry Hill Mortgage Investment and Modiv Industrial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cherry Hill Mortgage Investment | 0 | 0 | 2 | 0 | 3.00 |
| Modiv Industrial | 0 | 0 | 1 | 0 | 3.00 |
Cherry Hill Mortgage Investment presently has a consensus target price of $5.00, suggesting a potential upside of 30.38%. Modiv Industrial has a consensus target price of $18.00, suggesting a potential upside of 22.78%. Given Cherry Hill Mortgage Investment’s higher possible upside, research analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Modiv Industrial.
Profitability
This table compares Cherry Hill Mortgage Investment and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cherry Hill Mortgage Investment | -6.85% | 18.98% | 1.92% |
| Modiv Industrial | 1.80% | 0.37% | 0.16% |
Institutional & Insider Ownership
18.5% of Cherry Hill Mortgage Investment shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are owned by insiders. Comparatively, 4.6% of Modiv Industrial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Cherry Hill Mortgage Investment beats Modiv Industrial on 9 of the 15 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 Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.
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