Analyzing Cherry Hill Mortgage Investment (NYSE:CHMI) and ACRES Commercial Realty (NYSE:ACR)

ACRES Commercial Realty (NYSE:ACR) and Cherry Hill Mortgage Investment (NYSE:CHMI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for ACRES Commercial Realty and Cherry Hill Mortgage Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACRES Commercial Realty	0	2	3	0	2.60
Cherry Hill Mortgage Investment	1	2	1	1	2.40

ACRES Commercial Realty presently has a consensus price target of $24.50, suggesting a potential upside of 4.81%. Cherry Hill Mortgage Investment has a consensus price target of $3.38, suggesting a potential upside of 34.19%. Given Cherry Hill Mortgage Investment’s higher probable upside, analysts plainly believe Cherry Hill Mortgage Investment is more favorable than ACRES Commercial Realty.

Volatility and Risk

ACRES Commercial Realty has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Cherry Hill Mortgage Investment has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

40.0% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 18.5% of Cherry Hill Mortgage Investment shares are held by institutional investors. 3.9% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 1.5% of Cherry Hill Mortgage Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ACRES Commercial Realty and Cherry Hill Mortgage Investment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACRES Commercial Realty	$83.49 million	2.04	$29.27 million	$0.96	24.35
Cherry Hill Mortgage Investment	$55.80 million	1.66	$11.97 million	$0.02	125.75

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACRES Commercial Realty	35.16%	4.74%	1.16%
Cherry Hill Mortgage Investment	14.15%	16.17%	1.38%

Summary

ACRES Commercial Realty beats Cherry Hill Mortgage Investment on 10 of the 15 factors compared between the two stocks.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. 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 Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.

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.