Analyzing Bimini Capital Management (OTCMKTS:BMNM) & CubeSmart (NYSE:CUBE)

Bimini Capital Management (OTCMKTS:BMNM) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares Bimini Capital Management and CubeSmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bimini Capital Management	-40.69%	-56.73%	-3.59%
CubeSmart	37.79%	14.33%	6.48%

Insider & Institutional Ownership

97.6% of CubeSmart shares are held by institutional investors. 31.0% of Bimini Capital Management shares are held by company insiders. Comparatively, 1.7% of CubeSmart shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Bimini Capital Management pays an annual dividend of $0.13 per share and has a dividend yield of 12.4%. CubeSmart pays an annual dividend of $2.04 per share and has a dividend yield of 4.4%. Bimini Capital Management pays out -28.3% of its earnings in the form of a dividend. CubeSmart pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has increased its dividend for 14 consecutive years. Bimini Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for Bimini Capital Management and CubeSmart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bimini Capital Management	0	0	0	0	0.00
CubeSmart	1	6	4	0	2.27

CubeSmart has a consensus price target of $51.36, indicating a potential upside of 11.93%. Given CubeSmart’s stronger consensus rating and higher probable upside, analysts plainly believe CubeSmart is more favorable than Bimini Capital Management.

Valuation & Earnings

This table compares Bimini Capital Management and CubeSmart”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bimini Capital Management	$13.60 million	0.78	-$3.98 million	($0.46)	-2.28
CubeSmart	$1.05 billion	9.88	$410.76 million	$1.77	25.93

CubeSmart has higher revenue and earnings than Bimini Capital Management. Bimini Capital Management is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bimini Capital Management has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, CubeSmart has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Summary

CubeSmart beats Bimini Capital Management on 13 of the 17 factors compared between the two stocks.

About Bimini Capital Management

Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.