Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) and Cherry Hill Mortgage Investment (NYSE:CHMI – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Dividends
Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 13.9%. Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 17.1%. Blackstone Mortgage Trust pays out 8,266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Blackstone Mortgage Trust has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
Institutional & Insider Ownership
64.2% of Blackstone Mortgage Trust shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 1.0% of Blackstone Mortgage Trust shares are held by company insiders. Comparatively, 1.1% of Cherry Hill Mortgage Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Blackstone Mortgage Trust and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Mortgage Trust | 0.24% | 10.72% | 1.96% |
| Cherry Hill Mortgage Investment | -6.85% | 18.90% | 1.92% |
Valuation and Earnings
This table compares Blackstone Mortgage Trust 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 | |
| Blackstone Mortgage Trust | $638.87 million | 4.85 | $246.55 million | $0.03 | 595.17 |
| Cherry Hill Mortgage Investment | $49.99 million | 2.10 | -$34.79 million | ($0.51) | -6.87 |
Blackstone Mortgage Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Blackstone Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Blackstone Mortgage Trust and Cherry Hill Mortgage Investment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Mortgage Trust | 0 | 5 | 2 | 0 | 2.29 |
| Cherry Hill Mortgage Investment | 0 | 0 | 2 | 0 | 3.00 |
Blackstone Mortgage Trust currently has a consensus price target of $19.93, indicating a potential upside of 11.61%. Cherry Hill Mortgage Investment has a consensus price target of $5.00, indicating a potential upside of 42.65%. Given Cherry Hill Mortgage Investment’s stronger consensus rating and higher possible upside, analysts clearly believe Cherry Hill Mortgage Investment is more favorable than Blackstone Mortgage Trust.
Summary
Blackstone Mortgage Trust beats Cherry Hill Mortgage Investment on 8 of the 15 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.
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.
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