CHIMERA INVT CO/SH NEW (NYSE:CIM) and Douglas Emmett (NYSE:DEI) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Risk & Volatility
CHIMERA INVT CO/SH NEW has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.
This table compares CHIMERA INVT CO/SH NEW and Douglas Emmett’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CHIMERA INVT CO/SH NEW||32.33%||12.43%||1.90%|
Insider and Institutional Ownership
49.4% of CHIMERA INVT CO/SH NEW shares are held by institutional investors. Comparatively, 93.2% of Douglas Emmett shares are held by institutional investors. 0.7% of CHIMERA INVT CO/SH NEW shares are held by company insiders. Comparatively, 16.2% of Douglas Emmett shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for CHIMERA INVT CO/SH NEW and Douglas Emmett, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CHIMERA INVT CO/SH NEW||0||2||2||0||2.50|
CHIMERA INVT CO/SH NEW currently has a consensus price target of $19.50, suggesting a potential upside of 1.88%. Douglas Emmett has a consensus price target of $41.00, suggesting a potential downside of 0.56%. Given CHIMERA INVT CO/SH NEW’s higher probable upside, analysts plainly believe CHIMERA INVT CO/SH NEW is more favorable than Douglas Emmett.
Valuation and Earnings
This table compares CHIMERA INVT CO/SH NEW and Douglas Emmett’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CHIMERA INVT CO/SH NEW||$1.27 billion||2.81||$411.64 million||$2.34||8.18|
|Douglas Emmett||$881.32 million||7.96||$116.08 million||$2.02||20.41|
CHIMERA INVT CO/SH NEW has higher revenue and earnings than Douglas Emmett. CHIMERA INVT CO/SH NEW is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.
CHIMERA INVT CO/SH NEW pays an annual dividend of $2.00 per share and has a dividend yield of 10.4%. Douglas Emmett pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. CHIMERA INVT CO/SH NEW pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Emmett pays out 51.5% of its earnings in the form of a dividend. CHIMERA INVT CO/SH NEW has increased its dividend for 4 consecutive years and Douglas Emmett has increased its dividend for 8 consecutive years.
Douglas Emmett beats CHIMERA INVT CO/SH NEW on 9 of the 17 factors compared between the two stocks.
CHIMERA INVT CO/SH NEW Company Profile
Chimera Investment Corporation operates as a real estate investment trust in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, commercial mortgage loans, and other real estate related securities. It has elected to be taxed as a real estate investment trust. As a result, the company would not be subject to U.S. federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. Chimera Investment Corporation was founded in 2007 and is headquartered in New York, New York.
Douglas Emmett Company Profile
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
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