Ares Commercial Real Estate Corporation (ACRE) vs Cherry Hill Mortgage Investment Corporation (CHMI)

Ares Commercial Real Estate Corporation and Cherry Hill Mortgage Investment Corporation are both Reit Mortgage companies. Ares Commercial Real Estate Corporation is the larger, with a market value of $198.6M against $94.6M — 2.1× the size. Ares Commercial Real Estate Corporation has negative trailing earnings, so its P/E is not meaningful; Cherry Hill Mortgage Investment Corporation trades at 13.8×. Cherry Hill Mortgage Investment Corporation grew revenue faster over the last twelve months: 181.6% against −10.6%. Cherry Hill Mortgage Investment Corporation has the higher net margin (42.1% vs −8.04%) and the higher return on invested capital (2.16% vs 0.65%). Both pay a dividend; Ares Commercial Real Estate Corporation yields more (17.4% vs 16.1%). Across the 20 metrics below, Cherry Hill Mortgage Investment Corporation leads on 13 and Ares Commercial Real Estate Corporation on 7.

Valuation

Metric ACRE CHMI Reit Mortgage median
P/E n/m 13.83 7.10
P/S 3.46 5.80 1.77
P/B 0.39 0.74 0.55
Price to free cash flow 10.61 3.93 5.36
EV/EBITDA 63.52 28.90 28.29
EV/Sales 26.20 68.12 15.90
Earnings yield (2.32%) 7.23% 8.10%
Free cash flow yield 9.42% 25.47% 13.00%

Profitability

Metric ACRE CHMI Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 31.94% 255.39% 35.40%
Net margin (8.04%) 42.13% 11.85%
Free cash flow margin 32.64% 147.87% 26.68%
Return on equity (0.88%) 5.30% 4.81%
Return on assets (0.27%) 0.46% 0.62%
Return on invested capital 0.65% 2.16% 1.22%

Growth

Metric ACRE CHMI Reit Mortgage median
Revenue growth (TTM) (10.60%) 181.60% 4.70%
EPS growth (last fiscal year) 96.88% (257.14%) 45.25%
Revenue growth, 5-year CAGR (7.89%) (11.38%) 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACRE CHMI Reit Mortgage median
Debt to equity 2.58 4.41 3.30
Current ratio 0.00 0.09 1.00
Net debt to EBITDA 44.04 31.07 18.31

Dividend

Metric ACRE CHMI Reit Mortgage median
Dividend yield 17.39% 16.06% 17.34%
Payout ratio — 2.22 1.28

Size

Metric ACRE CHMI Reit Mortgage median
Market cap 198.62m 94.59m 479.53m

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