AGNC Investment (NASDAQ:AGNCN) vs. Cherry Hill Mortgage Investment (NYSE:CHMI) Critical Survey

AGNC Investment (NASDAQ:AGNCN) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Valuation & Earnings

This table compares AGNC Investment and Cherry Hill Mortgage Investment’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$847.00 million	N/A	N/A	N/A	N/A
Cherry Hill Mortgage Investment	$49.99 million	2.18	-$34.79 million	($0.51)	-7.12

AGNC Investment has higher revenue and earnings than Cherry Hill Mortgage Investment.

Analyst Ratings

This is a breakdown of current ratings and price targets for AGNC Investment and Cherry Hill Mortgage Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	0	0	0	N/A
Cherry Hill Mortgage Investment	0	0	2	0	3.00

Cherry Hill Mortgage Investment has a consensus target price of $5.00, indicating a potential upside of 37.74%. Given Cherry Hill Mortgage Investment’s higher possible upside, analysts clearly believe Cherry Hill Mortgage Investment is more favorable than AGNC Investment.

Profitability

This table compares AGNC Investment and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	N/A	N/A	N/A
Cherry Hill Mortgage Investment	-6.85%	18.98%	1.92%

Dividends

AGNC Investment pays an annual dividend of $1.75 per share and has a dividend yield of 6.8%. Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 16.5%. Cherry Hill Mortgage Investment pays out -117.6% of its earnings in the form of a dividend.

Institutional and Insider 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Cherry Hill Mortgage Investment beats AGNC Investment on 8 of the 10 factors compared between the two stocks.

About AGNC Investment

AGNC Investment Corp. provides private capital to housing market in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was incorporated in 2008 and is headquartered in Bethesda, Maryland.

About Cherry Hill Mortgage Investment

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.