Head-To-Head Analysis: CV (OTCMKTS:CVHL) & Ellington Financial (NYSE:EFC)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Ellington Financial and CV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ellington Financial	0	3	3	0	2.50
CV	0	0	0	0	0.00

Ellington Financial presently has a consensus target price of $14.56, indicating a potential upside of 10.80%. Given Ellington Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ellington Financial is more favorable than CV.

Valuation and Earnings

This table compares Ellington Financial and CV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ellington Financial	$494.49 million	3.31	$146.87 million	$1.23	10.69
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A

Ellington Financial has higher revenue and earnings than CV.

Institutional & Insider Ownership

55.6% of Ellington Financial shares are held by institutional investors. 3.2% of Ellington Financial shares are held by company insiders. Comparatively, 7.6% of CV shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Ellington Financial and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ellington Financial	53.10%	14.62%	1.17%
CV	N/A	N/A	N/A

Volatility & Risk

Ellington Financial has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, CV has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Summary

Ellington Financial beats CV on 9 of the 11 factors compared between the two stocks.

About Ellington Financial

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments; and consumer loans and asset-backed securities backed by consumer and commercial assets. 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. Ellington Financial LLC was incorporated in 2007 and is headquartered in Old Greenwich, Connecticut.

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.