Comparing UDR (NYSE:UDR) and Cherry Hill Mortgage Investment (NYSE:CHMI)

UDR (NYSE:UDRGet Rating) and Cherry Hill Mortgage Investment (NYSE:CHMIGet Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

96.4% of UDR shares are held by institutional investors. Comparatively, 27.7% of Cherry Hill Mortgage Investment shares are held by institutional investors. 3.4% of UDR shares are held by insiders. Comparatively, 1.2% of Cherry Hill Mortgage Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

UDR pays an annual dividend of $1.52 per share and has a dividend yield of 2.6%. Cherry Hill Mortgage Investment pays an annual dividend of $1.08 per share and has a dividend yield of 15.4%. UDR pays out 316.7% 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 830.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has increased its dividend for 14 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
UDR 11.62% 4.50% 1.36%
Cherry Hill Mortgage Investment 51.61% 16.83% 2.22%

Volatility & Risk

UDR has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for UDR and Cherry Hill Mortgage Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UDR 0 4 8 0 2.67
Cherry Hill Mortgage Investment 0 1 0 0 2.00

UDR presently has a consensus target price of $60.35, indicating a potential upside of 3.60%. Given UDR’s stronger consensus rating and higher possible upside, equities research analysts plainly believe UDR is more favorable than Cherry Hill Mortgage Investment.

Valuation and Earnings

This table compares UDR and Cherry Hill Mortgage Investment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UDR $1.29 billion 14.37 $150.02 million $0.48 121.36
Cherry Hill Mortgage Investment $14.96 million 8.57 $12.28 million $0.13 54.00

UDR has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.

Summary

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

UDR Company Profile (Get Rating)

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

Cherry Hill Mortgage Investment Company Profile (Get Rating)

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Investments in RMBS (residential mortgage-backed securities), Investments in Servicing Related Assets, and All Other segments. It manages a portfolio of servicing related assets and RMBS. 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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