Analyzing Cherry Hill Mortgage Investment (NYSE:CHMI) & Kite Realty Group Trust (NYSE:KRG)

Kite Realty Group Trust (NYSE:KRG) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

90.8% of Kite Realty Group Trust shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 2.0% of Kite Realty Group Trust shares are held by insiders. Comparatively, 1.4% 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kite Realty Group Trust and Cherry Hill Mortgage Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	0	5	2	1	2.50
Cherry Hill Mortgage Investment	0	1	1	1	3.00

Kite Realty Group Trust currently has a consensus price target of $27.88, suggesting a potential upside of 25.17%. Cherry Hill Mortgage Investment has a consensus price target of $4.00, suggesting a potential upside of 15.44%. Given Kite Realty Group Trust’s higher probable upside, equities analysts plainly believe Kite Realty Group Trust is more favorable than Cherry Hill Mortgage Investment.

Profitability

This table compares Kite Realty Group Trust and Cherry Hill Mortgage Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	0.48%	0.12%	0.06%
Cherry Hill Mortgage Investment	-60.97%	15.18%	1.45%

Earnings and Valuation

This table compares Kite Realty Group Trust 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
Kite Realty Group Trust	$841.84 million	5.81	$4.07 million	$0.02	1,113.50
Cherry Hill Mortgage Investment	$34.58 million	3.17	-$34.79 million	$0.06	57.75

Kite Realty Group Trust has higher revenue and earnings than Cherry Hill Mortgage Investment. Cherry Hill Mortgage Investment is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Kite Realty Group Trust has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.08 per share and has a dividend yield of 4.8%. Cherry Hill Mortgage Investment pays an annual dividend of $0.60 per share and has a dividend yield of 17.3%. Kite Realty Group Trust pays out 5,400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cherry Hill Mortgage Investment pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cherry Hill Mortgage Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kite Realty Group Trust beats Cherry Hill Mortgage Investment on 9 of the 16 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.

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.