Apollo Commercial Real Estate Finance (ARI) vs Chimera Investment Corporation (CIM)

Apollo Commercial Real Estate Finance and Chimera Investment Corporation are both Reit Mortgage companies. Apollo Commercial Real Estate Finance and Chimera Investment Corporation are of similar size ($882.3M and $804.7M). Chimera Investment Corporation has negative trailing earnings, so its P/E is not meaningful; Apollo Commercial Real Estate Finance trades at 7.8×. Chimera Investment Corporation grew revenue faster over the last twelve months: 11.6% against −14.7%. Apollo Commercial Real Estate Finance has the higher net margin (50.3% vs −9.71%) and the higher return on invested capital (339.7% vs 0.40%). Both pay a dividend; Chimera Investment Corporation yields more (15.5% vs 12.7%). Across the 21 metrics below, Apollo Commercial Real Estate Finance leads on 16 and Chimera Investment Corporation on 5.

Valuation

Metric ARI CIM Reit Mortgage median
P/E 7.80 n/m 7.80
P/S 3.44 1.00 1.90
P/B 0.65 0.36 0.61
Price to free cash flow 38.20 n/m 5.90
EV/EBITDA 10.08 145.58 28.40
EV/Sales 3.37 15.94 16.02
Earnings yield 12.82% (9.86%) 7.68%
Free cash flow yield 2.62% (44.56%) 11.60%

Profitability

Metric ARI CIM Reit Mortgage median
Gross margin 87.84% 100.00% 100.00%
Operating margin 35.13% 11.33% 35.40%
Net margin 50.33% (9.71%) 11.85%
Free cash flow margin 9.00% (44.37%) 26.68%
Return on equity 7.72% (3.35%) 4.81%
Return on assets 2.00% (0.55%) 0.62%
Return on invested capital 339.65% 0.40% 1.22%

Growth

Metric ARI CIM Reit Mortgage median
Revenue growth (TTM) (14.66%) 11.64% 4.70%
EPS growth (last fiscal year) 183.51% 56.36% —
Revenue growth, 5-year CAGR (0.51%) (4.43%) 14.60%
Net income growth, 5-year CAGR 88.28% 57.09% 0.00%

Health

Metric ARI CIM Reit Mortgage median
Debt to equity 0.00 5.57 3.30
Current ratio 2.45 0.07 1.00
Net debt to EBITDA 9.96 41.37 18.31

Dividend

Metric ARI CIM Reit Mortgage median
Dividend yield 12.68% 15.52% 13.05%
Payout ratio 1.69 1.86 1.24

Size

Metric ARI CIM Reit Mortgage median
Market cap 804.69m 882.32m 517.48m

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