Seven Hills Realty Trust (NASDAQ:SEVN) & Cherry Hill Mortgage Investment (NYSE:CHMI) Financial Analysis

Cherry Hill Mortgage Investment (NYSE:CHMIGet Free Report) and Seven Hills Realty Trust (NASDAQ:SEVNGet Free Report) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Earnings and Valuation

This table compares Cherry Hill Mortgage Investment and Seven Hills Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cherry Hill Mortgage Investment $49.99 million 2.18 -$34.79 million ($0.51) -7.12
Seven Hills Realty Trust $32.92 million N/A N/A $1.46 8.62

Seven Hills Realty Trust has lower revenue, but higher earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Seven Hills Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cherry Hill Mortgage Investment and Seven Hills Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cherry Hill Mortgage Investment -6.85% 18.98% 1.92%
Seven Hills Realty Trust N/A N/A N/A

Dividends

Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 16.5%. Seven Hills Realty Trust pays an annual dividend of $1.40 per share and has a dividend yield of 11.1%. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend. Seven Hills Realty Trust pays out 96.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Seven Hills Realty Trust has increased its dividend for 3 consecutive years. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 1.1% of Cherry Hill Mortgage Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Cherry Hill Mortgage Investment and Seven Hills Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cherry Hill Mortgage Investment 0 0 2 0 3.00
Seven Hills Realty Trust 0 0 2 0 3.00

Cherry Hill Mortgage Investment presently has a consensus target price of $5.00, indicating a potential upside of 37.74%. Seven Hills Realty Trust has a consensus target price of $14.25, indicating a potential upside of 13.37%. Given Cherry Hill Mortgage Investment’s higher possible upside, research analysts plainly believe Cherry Hill Mortgage Investment is more favorable than Seven Hills Realty Trust.

Summary

Cherry Hill Mortgage Investment beats Seven Hills Realty Trust on 8 of the 12 factors compared between the two stocks.

About Cherry Hill Mortgage Investment

(Get Free Report)

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments. Cherry Hill Mortgage Investment Corporation qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Cherry Hill Mortgage Investment Corporation was incorporated in 2012 and is based in Farmingdale, New Jersey.

About Seven Hills Realty Trust

(Get Free Report)

Seven Hills Realty Trust, a real estate investment trust, focuses on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as RMR Mortgage Trust. Seven Hills Realty Trust was incorporated in 2008 and is headquartered in Newton, Massachusetts.

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