Selectis Health (OTCMKTS:GBCS – Get Rating) and Chimera Investment (NYSE:CIM – Get Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Dividends
Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. Chimera Investment pays an annual dividend of $0.92 per share and has a dividend yield of 18.1%. Selectis Health pays out -7.1% of its earnings in the form of a dividend. Chimera Investment pays out -81.4% 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. Chimera Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Selectis Health and Chimera Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Selectis Health | -3.63% | -52.39% | -3.28% |
| Chimera Investment | -25.38% | 9.79% | 1.94% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Selectis Health | $29.29 million | 0.50 | -$2.25 million | ($0.56) | -8.48 |
| Chimera Investment | $773.12 million | 1.52 | -$513.07 million | ($1.13) | -4.49 |
Selectis Health has higher earnings, but lower revenue than Chimera Investment. Selectis Health is trading at a lower price-to-earnings ratio than Chimera Investment, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
47.1% of Chimera Investment shares are held by institutional investors. 15.2% of Selectis Health shares are held by insiders. Comparatively, 0.7% of Chimera Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Selectis Health and Chimera Investment, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Selectis Health | 0 | 0 | 0 | 0 | N/A |
| Chimera Investment | 1 | 1 | 1 | 0 | 2.00 |
Chimera Investment has a consensus target price of $7.17, suggesting a potential upside of 41.35%. Given Chimera Investment’s higher possible upside, analysts clearly believe Chimera Investment is more favorable than Selectis Health.
Risk and Volatility
Selectis Health has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.
Summary
Chimera Investment beats Selectis Health on 11 of the 15 factors compared between the two stocks.
About Selectis Health
Selectis Health, Inc. engages in the acquisition, development, leasing, and management of healthcare real estate and provides financing to healthcare providers. It operates through the Real Estate Services and Healthcare Services segments. The company was founded on June 8, 1978 and is headquartered in Greenwood Village, CO.
About Chimera Investment
Chimera Investment Corp. is a real estate investment trust, which engages in the business of investing in a portfolio of mortgage assets, including residential mortgage loans, Agency RMBS, Non-Agency RMBS, Agency CMBS, and other real estate-related assets. The company was founded on June 1, 2007 and is headquartered in New York, NY.
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