Reviewing Chimera Investment (NYSE:CIM) and Net Lease Office Properties (NYSE:NLOP)

Chimera Investment (NYSE:CIM) and Net Lease Office Properties (NYSE:NLOP) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Chimera Investment and Net Lease Office Properties’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$286.07 million	4.32	$126.10 million	$1.53	10.05
Net Lease Office Properties	$172.53 million	2.59	-$131.75 million	N/A	N/A

Chimera Investment has higher revenue and earnings than Net Lease Office Properties.

Profitability

This table compares Chimera Investment and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	25.73%	7.46%	1.48%
Net Lease Office Properties	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Chimera Investment and Net Lease Office Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	0	2	0	0	2.00
Net Lease Office Properties	0	0	1	0	3.00

Chimera Investment presently has a consensus price target of $16.25, indicating a potential upside of 5.73%. Net Lease Office Properties has a consensus price target of $46.00, indicating a potential upside of 51.97%. Given Net Lease Office Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Net Lease Office Properties is more favorable than Chimera Investment.

Insider and Institutional Ownership

48.4% of Chimera Investment shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 0.9% of Chimera Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Chimera Investment pays an annual dividend of $1.40 per share and has a dividend yield of 9.1%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. Chimera Investment pays out 91.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Chimera Investment beats Net Lease Office Properties on 8 of the 13 factors compared between the two stocks.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.