CHMI vs EARN

For growth investors, Cherry Hill Mortgage Investment Corporation (CHMI) is the stronger pick with 204.

8% revenue growth year-over-year, versus -8. 4% for Ellington Credit Company (EARN). Ellington Credit Company (EARN) offers the better valuation at 20. 3x trailing P/E (4. 6x forward), making it the more compelling value choice. Analysts rate Ellington Credit Company (EARN) a "Hold" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Ellington Credit Company (EARN) delivered a total return of -17.

4%, compared to -37. 1% for Cherry Hill Mortgage Investment Corporation (CHMI). Over 10 years, the gap is even starker: EARN returned +31. 3% versus CHMI's +5. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ellington Credit Company (EARN) is the lower-risk stock at 0.

63β versus Cherry Hill Mortgage Investment Corporation's 0. 75β — meaning CHMI is approximately 18% more volatile than EARN relative to the S&P 500. On balance sheet safety, Ellington Credit Company (EARN) carries a lower debt/equity ratio of 3% versus 5% for Cherry Hill Mortgage Investment Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cherry Hill Mortgage Investment Corporation (CHMI) is pulling ahead at 204.

8% versus -8. 4% for Ellington Credit Company (EARN). On earnings-per-share growth, the picture is similar: Ellington Credit Company grew EPS -22. 6% year-over-year, compared to -246. 4% for Cherry Hill Mortgage Investment Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Ellington Credit Company (EARN) is the more profitable company, earning 13.

0% net margin versus 6. 5% for Cherry Hill Mortgage Investment Corporation — meaning it keeps 13. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CHMI leads at 55. 9% versus 14. 0% for EARN. At the gross margin level — before operating expenses — CHMI leads at 91. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, EARN (16.

8% yield) pays a dividend. CHMI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Ellington Credit Company (EARN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

63), 16. 8% yield). Both have compounded well over 10 years (EARN: +31. 3%, CHMI: +5. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CHMI (Real Estate) and EARN (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CHMI is a small-cap high-growth stock; EARN is a small-cap income-oriented stock. EARN pays a dividend while CHMI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.