Cherry Hill Mortgage Investment Corporation (CHMI) vs Ready Capital Corp (RC)

Cherry Hill Mortgage Investment Corporation and Ready Capital Corp are both Reit Mortgage companies. Ready Capital Corp is the larger, with a market value of $176.8M against $90.2M — 2.0× the size. Ready Capital Corp has negative trailing earnings, so its P/E is not meaningful; Cherry Hill Mortgage Investment Corporation trades at 27.1×. Cherry Hill Mortgage Investment Corporation grew revenue faster over the last twelve months: 93.1% against −43.0%. Cherry Hill Mortgage Investment Corporation has the higher net margin (4.66% vs −134.1%) and the lower return on invested capital (2.15% vs 6.29%). Both pay a dividend; Cherry Hill Mortgage Investment Corporation yields more (16.4% vs 3.67%). Across the 20 metrics below, Ready Capital Corp leads on 13 and Cherry Hill Mortgage Investment Corporation on 7.

Valuation

Metric CHMI RC Reit Mortgage median
P/E 27.14 n/m 14.55
P/S 5.30 0.43 1.72
P/B 0.84 0.15 0.52
Price to free cash flow 2.10 0.14 4.35
EV/EBITDA 29.06 6.39 28.27
EV/Sales 60.72 7.31 15.73
Earnings yield 3.68% (318.35%) 0.23%
Free cash flow yield 47.51% 693.71% 13.86%

Profitability

Metric CHMI RC Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 223.85% 101.42% 31.94%
Net margin 4.66% (134.14%) (1.81%)
Free cash flow margin 251.80% 297.03% 27.05%
Return on equity 0.67% (37.06%) (0.49%)
Return on assets 0.05% (7.25%) (0.06%)
Return on invested capital 2.15% 6.29% 0.79%

Growth

Metric CHMI RC Reit Mortgage median
Revenue growth (TTM) 93.14% (43.02%) 1.39%
EPS growth (last fiscal year) (228.57%) 45.25% 45.25%
Revenue growth, 5-year CAGR (11.38%) 17.09% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CHMI RC Reit Mortgage median
Debt to equity 4.54 2.29 2.91
Current ratio 0.09 1.91 0.82
Net debt to EBITDA 31.07 6.30 18.31

Dividend

Metric CHMI RC Reit Mortgage median
Dividend yield 16.39% 3.67% 17.37%
Payout ratio 4.45 — 1.87

Size

Metric CHMI RC Reit Mortgage median
Market cap 90.15m 176.76m 409.49m

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