Comparing Weyerhaeuser (NYSE:WY) & Cherry Hill Mortgage Investment (NYSE:CHMI)

Weyerhaeuser (NYSE:WY) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Dividends

Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 16.4%. Weyerhaeuser pays out 72.7% 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. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

83.0% of Weyerhaeuser shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 0.3% of Weyerhaeuser 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weyerhaeuser	10.57%	7.00%	4.14%
Cherry Hill Mortgage Investment	-6.85%	18.98%	1.92%

Volatility and Risk

Weyerhaeuser has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Weyerhaeuser and Cherry Hill Mortgage Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyerhaeuser	0	4	2	0	2.33
Cherry Hill Mortgage Investment	0	0	2	0	3.00

Weyerhaeuser presently has a consensus price target of $37.67, indicating a potential upside of 39.25%. Cherry Hill Mortgage Investment has a consensus price target of $5.00, indicating a potential upside of 36.80%. Given Weyerhaeuser’s higher possible upside, equities analysts plainly believe Weyerhaeuser is more favorable than Cherry Hill Mortgage Investment.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyerhaeuser	$7.67 billion	2.57	$839.00 million	$1.10	24.59
Cherry Hill Mortgage Investment	$49.99 million	2.19	-$34.79 million	($0.51)	-7.17

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

Summary

Weyerhaeuser beats Cherry Hill Mortgage Investment on 9 of the 15 factors compared between the two stocks.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.

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.