Adamas Trust, Inc. (ADAM) vs Chimera Investment Corporation (CIM)

Adamas Trust, Inc. and Chimera Investment Corporation are both Reit Mortgage companies. Adamas Trust, Inc. and Chimera Investment Corporation are of similar size ($715.7M and $700.2M). Chimera Investment Corporation has negative trailing earnings, so its P/E is not meaningful; Adamas Trust, Inc. trades at 4.5×. Adamas Trust, Inc. grew revenue faster over the last twelve months: 36.3% against 11.6%. Adamas Trust, Inc. has the higher net margin (22.8% vs −9.71%) and the higher return on invested capital (1.22% vs 0.40%). Both pay a dividend; Chimera Investment Corporation yields more (20.5% vs 13.5%). Across the 21 metrics below, Adamas Trust, Inc. leads on 13 and Chimera Investment Corporation on 8.

Valuation

Metric ADAM CIM Reit Mortgage median
P/E 4.47 n/m 7.10
P/S 1.01 0.81 1.77
P/B 0.74 0.29 0.55
Price to free cash flow 1.36 n/m 5.36
EV/EBITDA 41.14 143.87 28.29
EV/Sales 16.99 15.75 15.90
Earnings yield 22.38% (12.14%) 8.10%
Free cash flow yield 73.44% (54.85%) 13.00%

Profitability

Metric ADAM CIM Reit Mortgage median
Gross margin 27.01% 100.00% 100.00%
Operating margin 35.40% 11.33% 35.40%
Net margin 22.81% (9.71%) 11.85%
Free cash flow margin 74.49% (44.37%) 26.68%
Return on equity 17.44% (3.35%) 4.81%
Return on assets 1.32% (0.55%) 0.62%
Return on invested capital 1.22% 0.40% 1.22%

Growth

Metric ADAM CIM Reit Mortgage median
Revenue growth (TTM) 36.30% 11.64% 4.70%
EPS growth (last fiscal year) 196.49% 56.36% 45.25%
Revenue growth, 5-year CAGR 11.44% (4.43%) 14.60%
Net income growth, 5-year CAGR 0.00% 57.09% 0.00%

Health

Metric ADAM CIM Reit Mortgage median
Debt to equity 7.51 5.57 3.30
Current ratio 18.54 0.07 1.00
Net debt to EBITDA 55.86 41.37 18.31

Dividend

Metric ADAM CIM Reit Mortgage median
Dividend yield 13.48% 20.48% 17.34%
Payout ratio 0.61 — 1.28

Size

Metric ADAM CIM Reit Mortgage median
Market cap 700.17m 715.74m 479.53m

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