Chimera Investment Corporation (CIM) vs MFA Financial, Inc. (MFA)

Chimera Investment Corporation and MFA Financial, Inc. are both Reit Mortgage companies. Chimera Investment Corporation and MFA Financial, Inc. are of similar size ($882.3M and $824.9M). Chimera Investment Corporation has negative trailing earnings, so its P/E is not meaningful; MFA Financial, Inc. trades at 8.0×. Chimera Investment Corporation grew revenue faster over the last twelve months: 11.6% against 4.90%. MFA Financial, Inc. has the higher net margin (13.8% vs −9.71%) and the higher return on invested capital (2.88% vs 0.40%). Both pay a dividend; Chimera Investment Corporation yields more (15.5% vs 13.1%). Across the 20 metrics below, MFA Financial, Inc. leads on 13 and Chimera Investment Corporation on 7.

Valuation

Metric CIM MFA Reit Mortgage median
P/E n/m 8.01 7.80
P/S 1.00 1.11 1.90
P/B 0.36 0.48 0.61
Price to free cash flow n/m 2.36 5.90
EV/EBITDA 145.58 19.88 28.40
EV/Sales 15.94 15.94 16.02
Earnings yield (9.86%) 12.48% 7.68%
Free cash flow yield (44.56%) 42.40% 11.60%

Profitability

Metric CIM MFA Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 11.33% 79.06% 35.40%
Net margin (9.71%) 13.82% 11.85%
Free cash flow margin (44.37%) 46.95% 26.68%
Return on equity (3.35%) 5.88% 4.81%
Return on assets (0.55%) 0.83% 0.62%
Return on invested capital 0.40% 2.88% 1.22%

Growth

Metric CIM MFA Reit Mortgage median
Revenue growth (TTM) 11.64% 4.90% 4.70%
EPS growth (last fiscal year) 56.36% 58.54% —
Revenue growth, 5-year CAGR (4.43%) 11.47% 14.60%
Net income growth, 5-year CAGR 57.09% 0.00% 0.00%

Health

Metric CIM MFA Reit Mortgage median
Debt to equity 5.57 6.56 3.30
Current ratio 0.07 0.00 1.00
Net debt to EBITDA 41.37 17.85 18.31

Dividend

Metric CIM MFA Reit Mortgage median
Dividend yield 15.52% 13.05% 13.05%
Payout ratio 1.86 1.51 1.24

Size

Metric CIM MFA Reit Mortgage median
Market cap 882.32m 824.88m 517.48m

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