Critical Review: Chimera Investment (NYSE:CIM) and InvenTrust Properties (NYSE:IVT)

Chimera Investment (NYSE:CIM) and InvenTrust Properties (NYSE:IVT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Volatility & Risk

Chimera Investment has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Insider & Institutional Ownership

48.4% of Chimera Investment shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 0.9% of Chimera Investment shares are held by insiders. Comparatively, 0.4% of InvenTrust Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 9.1%. InvenTrust Properties pays an annual dividend of $0.90 per share and has a dividend yield of 3.2%. Chimera Investment pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties pays out 900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chimera Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Chimera Investment and InvenTrust Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$286.07 million	4.55	$126.10 million	$1.53	10.58
InvenTrust Properties	$263.01 million	7.30	$5.27 million	$0.10	283.00

Chimera Investment has higher revenue and earnings than InvenTrust Properties. Chimera Investment is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Chimera Investment and InvenTrust Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	0	2	0	0	2.00
InvenTrust Properties	0	1	1	0	2.50

Chimera Investment presently has a consensus target price of $16.25, indicating a potential upside of 0.37%. InvenTrust Properties has a consensus target price of $30.50, indicating a potential upside of 7.77%. Given InvenTrust Properties’ stronger consensus rating and higher possible upside, analysts plainly believe InvenTrust Properties is more favorable than Chimera Investment.

Profitability

This table compares Chimera Investment and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	28.79%	7.66%	1.54%
InvenTrust Properties	2.46%	0.42%	0.26%

Summary

Chimera Investment beats InvenTrust Properties on 10 of the 16 factors compared between the two stocks.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.

About InvenTrust Properties

InvenTrust Properties Corp. (the "Company," "IVT," or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company's business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark ("GRESB") member since 2013.