Critical Review: Bimini Capital Management (OTCMKTS:BMNM) and Cherry Hill Mortgage Investment (NYSE:CHMI)

Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) and Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.
Institutional and Insider Ownership
18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 1.5% of Cherry Hill Mortgage Investment shares are held by insiders. Comparatively, 45.4% of Bimini Capital Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
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Risk & Volatility
Cherry Hill Mortgage Investment has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Bimini Capital Management has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.
Profitability
This table compares Cherry Hill Mortgage Investment and Bimini Capital Management’s net margins, return on equity and return on assets.
Valuation and Earnings
This table compares Cherry Hill Mortgage Investment and Bimini Capital Management”s revenue, earnings per share (EPS) and valuation.
Cherry Hill Mortgage Investment has higher revenue and earnings than Bimini Capital Management. Bimini Capital Management 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 Recommendations
This is a breakdown of recent recommendations and price targets for Cherry Hill Mortgage Investment and Bimini Capital Management, as provided by MarketBeat.
Cherry Hill Mortgage Investment presently has a consensus price target of $4.00, suggesting a potential upside of 55.34%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Bimini Capital Management.
Summary
Cherry Hill Mortgage Investment beats Bimini Capital Management on 12 of the 15 factors compared between the two stocks.
About Cherry Hill Mortgage Investment
(Get Free Report)
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 Bimini Capital Management
(Get Free Report)
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.