Contrasting Summit Industrial Income REIT (OTCMKTS:SMMCF) and Chimera Investment (NYSE:CIM)

Chimera Investment (NYSE:CIM) and Summit Industrial Income REIT (OTCMKTS:SMMCF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Chimera Investment and Summit Industrial Income REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chimera Investment	0	2	0	0	2.00
Summit Industrial Income REIT	0	0	0	0	0.00

Chimera Investment currently has a consensus target price of $16.25, indicating a potential upside of 10.02%. Given Chimera Investment’s stronger consensus rating and higher possible upside, analysts plainly believe Chimera Investment is more favorable than Summit Industrial Income REIT.

Dividends

Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 10.0%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Chimera Investment pays out 44.8% of its earnings in the form of a dividend. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Chimera Investment and Summit Industrial Income REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chimera Investment	46.48%	7.69%	1.56%
Summit Industrial Income REIT	N/A	N/A	N/A

Earnings and Valuation

This table compares Chimera Investment and Summit Industrial Income REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chimera Investment	$772.90 million	1.55	$126.10 million	$3.30	4.48
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

Chimera Investment has higher revenue and earnings than Summit Industrial Income REIT. Chimera Investment is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

48.4% of Chimera Investment shares are held by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are held by institutional investors. 0.9% of Chimera Investment shares are held by company 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.

Summary

Chimera Investment beats Summit Industrial Income REIT on 10 of the 12 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 Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.