Critical Analysis: Angel Oak Mortgage REIT (NYSE:AOMR) versus CV (OTCMKTS:CVHL)

CV (OTCMKTS:CVHL) and Angel Oak Mortgage REIT (NYSE:AOMR) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Valuation & Earnings

This table compares CV and Angel Oak Mortgage REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A
Angel Oak Mortgage REIT	$110.43 million	2.03	$28.75 million	$0.71	12.66

Angel Oak Mortgage REIT has higher revenue and earnings than CV.

Risk and Volatility

CV has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Angel Oak Mortgage REIT has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares CV and Angel Oak Mortgage REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CV	N/A	N/A	N/A
Angel Oak Mortgage REIT	12.93%	6.42%	0.63%

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. 7.6% of CV shares are owned by company insiders. Comparatively, 2.5% of Angel Oak Mortgage REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CV and Angel Oak Mortgage REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV	0	0	0	0	0.00
Angel Oak Mortgage REIT	0	3	3	0	2.50

Angel Oak Mortgage REIT has a consensus target price of $11.06, indicating a potential upside of 23.05%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than CV.

Summary

Angel Oak Mortgage REIT beats CV on 9 of the 11 factors compared between the two stocks.

About CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2018 and is headquartered in Atlanta, Georgia.