Financial Analysis: Chimera Investment (NYSE:CIM) and CV (OTCMKTS:CVHL)

Chimera Investment (NYSE:CIM) and CV (OTCMKTS:CVHL) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Profitability

This table compares Chimera Investment and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	28.06%	8.73%	1.54%
CV	N/A	N/A	N/A

Insider and Institutional Ownership

48.4% of Chimera Investment shares are held by institutional investors. 1.5% of Chimera Investment shares are held by insiders. Comparatively, 7.6% of CV shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Chimera Investment and CV”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$821.34 million	1.39	$230.50 million	$1.75	7.82
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A

Chimera Investment has higher revenue and earnings than CV.

Risk & Volatility

Chimera Investment has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, CV has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Chimera Investment and CV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	1	2	1	0	2.00
CV	0	0	0	0	0.00

Chimera Investment currently has a consensus target price of $14.50, suggesting a potential upside of 5.96%. Given Chimera Investment’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Chimera Investment is more favorable than CV.

Summary

Chimera Investment beats CV on 10 of the 11 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 CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.