Bimini Capital Managment (OTCMKTS:BMNM) and PennyMac Mortgage Investment Trust (NYSE:PMT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
Valuation & Earnings
This table compares Bimini Capital Managment and PennyMac Mortgage Investment Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bimini Capital Managment||$12.24 million||2.03||-$16.48 million||N/A||N/A|
|PennyMac Mortgage Investment Trust||$351.07 million||4.02||$152.80 million||$1.99||10.43|
This is a summary of current recommendations for Bimini Capital Managment and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bimini Capital Managment||0||0||0||0||N/A|
|PennyMac Mortgage Investment Trust||0||2||3||0||2.60|
PennyMac Mortgage Investment Trust has a consensus price target of $21.40, indicating a potential upside of 3.08%. Given PennyMac Mortgage Investment Trust’s higher possible upside, analysts plainly believe PennyMac Mortgage Investment Trust is more favorable than Bimini Capital Managment.
Risk and Volatility
Bimini Capital Managment has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 9.1%. Bimini Capital Managment does not pay a dividend. PennyMac Mortgage Investment Trust pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Bimini Capital Managment and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bimini Capital Managment||-218.79%||-50.54%||-9.81%|
|PennyMac Mortgage Investment Trust||43.52%||12.19%||2.22%|
Institutional and Insider Ownership
64.7% of PennyMac Mortgage Investment Trust shares are held by institutional investors. 32.0% of Bimini Capital Managment shares are held by company insiders. Comparatively, 2.5% of PennyMac Mortgage Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
PennyMac Mortgage Investment Trust beats Bimini Capital Managment on 10 of the 13 factors compared between the two stocks.
Bimini Capital Managment Company Profile
Bimini Capital Management, Inc., through its subsidiaries, primarily invests in residential mortgage-related securities. The company operates through two segments, Asset Management and Investment Portfolio. It offers investment advisory services; invests in shares; and administers business activities and day-to-day operations. 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.
PennyMac Mortgage Investment Trust Company Profile
PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company's Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). Its Credit Sensitive Strategies segment invests in credit risk transfer agreements, distressed mortgage loans, real estate acquired in settlement of mortgage loans, non-Agency subordinated bonds, and small balance commercial real estate mortgage loans. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS; and the related interest rate hedging activities. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. PennyMac Mortgage Investment Trust was founded in 2009 and is based in Westlake Village, California.
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