UDR (NYSE:UDR – Get Rating) and Cherry Hill Mortgage Investment (NYSE:CHMI – Get Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Dividends
UDR pays an annual dividend of $1.52 per share and has a dividend yield of 2.7%. Cherry Hill Mortgage Investment pays an annual dividend of $1.08 per share and has a dividend yield of 14.7%. UDR pays out 316.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cherry Hill Mortgage Investment pays out 830.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 14 consecutive years.
Institutional and Insider Ownership
96.4% of UDR shares are owned by institutional investors. Comparatively, 27.7% of Cherry Hill Mortgage Investment shares are owned by institutional investors. 3.4% of UDR shares are owned by insiders. Comparatively, 1.2% of Cherry Hill Mortgage Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares UDR and Cherry Hill Mortgage Investment’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UDR | $1.29 billion | 14.09 | $150.02 million | $0.48 | 119.02 |
| Cherry Hill Mortgage Investment | $14.96 million | 8.95 | $12.28 million | $0.13 | 56.38 |
UDR has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for UDR and Cherry Hill Mortgage Investment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UDR | 0 | 4 | 8 | 0 | 2.67 |
| Cherry Hill Mortgage Investment | 0 | 1 | 1 | 0 | 2.50 |
UDR currently has a consensus target price of $60.35, indicating a potential upside of 5.63%. Given UDR’s stronger consensus rating and higher possible upside, equities analysts clearly believe UDR is more favorable than Cherry Hill Mortgage Investment.
Volatility & Risk
UDR has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.
Profitability
This table compares UDR and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UDR | 11.62% | 4.50% | 1.36% |
| Cherry Hill Mortgage Investment | 51.61% | 16.83% | 2.22% |
Summary
UDR beats Cherry Hill Mortgage Investment on 12 of the 17 factors compared between the two stocks.
About UDR (Get Rating)
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
About Cherry Hill Mortgage Investment (Get Rating)
Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. The company operates through Investments in RMBS (residential mortgage-backed securities), Investments in Servicing Related Assets, and All Other segments. It manages a portfolio of servicing related assets and RMBS. 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.
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