ARR vs. CIM, RWT, MFA, DX, NYMT, PMT, TWO, ACRE, RC, and ARI
Should you be buying ARMOUR Residential REIT stock or one of its competitors? The main competitors of ARMOUR Residential REIT include Chimera Investment (CIM), Redwood Trust (RWT), MFA Financial (MFA), Dynex Capital (DX), New York Mortgage Trust (NYMT), PennyMac Mortgage Investment Trust (PMT), Two Harbors Investment (TWO), Ares Commercial Real Estate (ACRE), Ready Capital (RC), and Apollo Commercial Real Estate Finance (ARI). These companies are all part of the "mortgage reits" industry.
ARMOUR Residential REIT (NYSE:ARR) and Chimera Investment (NYSE:CIM) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, media sentiment, risk, earnings, analyst recommendations, dividends, community ranking and institutional ownership.
ARMOUR Residential REIT pays an annual dividend of $2.88 per share and has a dividend yield of 15.6%. Chimera Investment pays an annual dividend of $0.44 per share and has a dividend yield of 10.5%. ARMOUR Residential REIT pays out -400.0% of its earnings in the form of a dividend. Chimera Investment pays out 191.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARMOUR Residential REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 48.4% of Chimera Investment shares are owned by institutional investors. 1.3% of ARMOUR Residential REIT shares are owned by company insiders. Comparatively, 0.7% of Chimera Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Chimera Investment has a net margin of 16.32% compared to ARMOUR Residential REIT's net margin of -3.83%. ARMOUR Residential REIT's return on equity of 15.63% beat Chimera Investment's return on equity.
ARMOUR Residential REIT currently has a consensus price target of $19.25, indicating a potential upside of 3.94%. Chimera Investment has a consensus price target of $5.50, indicating a potential upside of 31.26%. Given Chimera Investment's higher possible upside, analysts clearly believe Chimera Investment is more favorable than ARMOUR Residential REIT.
ARMOUR Residential REIT has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Chimera Investment received 142 more outperform votes than ARMOUR Residential REIT when rated by MarketBeat users. Likewise, 58.00% of users gave Chimera Investment an outperform vote while only 50.00% of users gave ARMOUR Residential REIT an outperform vote.
Chimera Investment has higher revenue and earnings than ARMOUR Residential REIT. ARMOUR Residential REIT is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
In the previous week, ARMOUR Residential REIT had 10 more articles in the media than Chimera Investment. MarketBeat recorded 15 mentions for ARMOUR Residential REIT and 5 mentions for Chimera Investment. Chimera Investment's average media sentiment score of 0.77 beat ARMOUR Residential REIT's score of 0.42 indicating that Chimera Investment is being referred to more favorably in the news media.
Summary
Chimera Investment beats ARMOUR Residential REIT on 10 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ARR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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