Altisource Portfolio Solutions (NASDAQ:ASPS – Get Free Report) and Chimera Investment (NYSE:CIM – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Insider and Institutional Ownership
41.4% of Altisource Portfolio Solutions shares are owned by institutional investors. Comparatively, 48.4% of Chimera Investment shares are owned by institutional investors. 2.3% of Altisource Portfolio Solutions shares are owned by insiders. Comparatively, 1.5% of Chimera Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Altisource Portfolio Solutions and Chimera Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Altisource Portfolio Solutions | 0.04% | N/A | -3.73% |
| Chimera Investment | 28.06% | 8.73% | 1.54% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Altisource Portfolio Solutions | 1 | 0 | 0 | 0 | 1.00 |
| Chimera Investment | 0 | 3 | 1 | 0 | 2.25 |
Chimera Investment has a consensus target price of $14.50, suggesting a potential upside of 6.74%. Given Chimera Investment’s stronger consensus rating and higher probable upside, analysts plainly believe Chimera Investment is more favorable than Altisource Portfolio Solutions.
Volatility and Risk
Altisource Portfolio Solutions has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
Earnings & Valuation
This table compares Altisource Portfolio Solutions and Chimera Investment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Altisource Portfolio Solutions | $160.13 million | 0.52 | -$35.64 million | ($1.94) | -3.93 |
| Chimera Investment | $821.34 million | 1.38 | $230.50 million | $1.75 | 7.76 |
Chimera Investment has higher revenue and earnings than Altisource Portfolio Solutions. Altisource Portfolio Solutions is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
Summary
Chimera Investment beats Altisource Portfolio Solutions on 13 of the 14 factors compared between the two stocks.
About Altisource Portfolio Solutions
Altisource Portfolio Solutions S.A. operates as an integrated service provider and marketplace for the real estate and mortgage industries in the United States and internationally. It operates through Servicer and Real Estate, and Origination segments. The Servicer and Real Estate segment offers property preservation, inspection, title insurance and settlement, real estate valuation, foreclosure trustee, and residential and commercial construction inspection and risk mitigation services. This segment provides Hubzu, an online real estate auction platform, as well as real estate auction, real estate brokerage, and asset management services; Equator, a software-as-a-service technology to manage real estate owned, short sales, foreclosure, bankruptcy, and eviction processes; a vendor invoicing and payment system; RentRange, a single and multi-family rental data, analytics, and rent-based valuation solution; REALSynergy, a commercial loan servicing platform; and NestRange, an automated residential valuation model and analytics solution. The Origination segment offers loan fulfillment, certification and certification insurance services, management services. In addition, it provides Lendors One Loan Automation, a marketplace to order services and a tool to automate components of the loan manufacturing process; TrelixAI, a technology to manage the workflow and automate components of the loan fulfillment, pre and post close quality, and service transfer processes; and ADMS, a document management and data analytics delivery platform. The company serves financial institutions, government-sponsored enterprises, banks, asset managers, servicers, investors, property management firms, real estate brokerages, insurance companies, mortgage bankers, originators, and correspondent and private money lenders. Altisource Portfolio Solutions S.A. was incorporated in 1999 and is headquartered in Luxembourg City, Luxembourg.
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.
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