Financial Comparison: Angel Oak Mortgage REIT (NYSE:AOMR) versus Cherry Hill Mortgage Investment (NYSE:CHMI)

Angel Oak Mortgage REIT (NYSE:AOMR) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Angel Oak Mortgage REIT and Cherry Hill Mortgage Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	0	3	3	0	2.50
Cherry Hill Mortgage Investment	1	1	2	0	2.25

Angel Oak Mortgage REIT presently has a consensus price target of $11.06, indicating a potential upside of 27.30%. Cherry Hill Mortgage Investment has a consensus price target of $3.00, indicating a potential upside of 9.49%. Given Angel Oak Mortgage REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Angel Oak Mortgage REIT is more favorable than Cherry Hill Mortgage Investment.

Institutional & Insider Ownership

80.2% of Angel Oak Mortgage REIT shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 2.5% of Angel Oak Mortgage REIT shares are held by company insiders. Comparatively, 1.5% of Cherry Hill Mortgage Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Angel Oak Mortgage REIT has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares Angel Oak Mortgage REIT and Cherry Hill Mortgage Investment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$143.65 million	1.51	$44.02 million	$1.81	4.80
Cherry Hill Mortgage Investment	$61.10 million	1.65	-$3.00 million	($0.13)	-21.08

Angel Oak Mortgage 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 Angel Oak Mortgage REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	30.65%	5.22%	0.51%
Cherry Hill Mortgage Investment	7.28%	16.40%	1.40%

Dividends

Angel Oak Mortgage REIT pays an annual dividend of $1.28 per share and has a dividend yield of 14.7%. Cherry Hill Mortgage Investment pays an annual dividend of $0.40 per share and has a dividend yield of 14.6%. Angel Oak Mortgage REIT pays out 70.7% of its earnings in the form of a dividend. Cherry Hill Mortgage Investment pays out -307.7% 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. Cherry Hill Mortgage Investment has increased its dividend for 1 consecutive years.

Summary

Angel Oak Mortgage REIT beats Cherry Hill Mortgage Investment on 12 of the 17 factors compared between the two stocks.

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.

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.