Financial Analysis: Bimini Capital Management (OTCMKTS:BMNM) vs. CubeSmart (NYSE:CUBE)

CubeSmart (NYSE:CUBE) and Bimini Capital Management (OTCMKTS:BMNM) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Risk & Volatility

CubeSmart has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Bimini Capital Management has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Institutional & Insider Ownership

97.6% of CubeSmart shares are held by institutional investors. 1.7% of CubeSmart shares are held by insiders. Comparatively, 31.0% of Bimini Capital Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares CubeSmart and Bimini Capital Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$1.06 billion	9.21	$410.76 million	$1.77	24.47
Bimini Capital Management	$13.60 million	0.79	-$3.98 million	($0.46)	-2.33

CubeSmart has higher revenue and earnings than Bimini Capital Management. Bimini Capital Management is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for CubeSmart and Bimini Capital Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CubeSmart	1	6	4	0	2.27
Bimini Capital Management	0	0	0	0	0.00

CubeSmart presently has a consensus target price of $51.36, suggesting a potential upside of 18.60%. Given CubeSmart’s stronger consensus rating and higher probable upside, equities analysts clearly believe CubeSmart is more favorable than Bimini Capital Management.

Profitability

This table compares CubeSmart and Bimini Capital Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CubeSmart	37.79%	14.33%	6.48%
Bimini Capital Management	-40.69%	-56.73%	-3.59%

Dividends

CubeSmart pays an annual dividend of $2.08 per share and has a dividend yield of 4.8%. Bimini Capital Management pays an annual dividend of $0.13 per share and has a dividend yield of 12.1%. CubeSmart pays out 117.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bimini Capital Management pays out -28.3% of its earnings in the form of a dividend. CubeSmart has increased its dividend for 14 consecutive years. Bimini Capital Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

CubeSmart beats Bimini Capital Management on 13 of the 17 factors compared between the two stocks.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

About Bimini Capital Management

Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.