Critical Analysis: CV (OTCMKTS:CVHL) & PennyMac Mortgage Investment Trust (NYSE:PMT)

PennyMac Mortgage Investment Trust (NYSE:PMT) and CV (OTCMKTS:CVHL) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Volatility and Risk

PennyMac Mortgage Investment Trust has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, CV has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

Insider and Institutional Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by insiders. Comparatively, 7.6% of CV shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares PennyMac Mortgage Investment Trust and CV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$307.46 million	3.42	$127.87 million	$0.98	12.32
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A

PennyMac Mortgage Investment Trust has higher revenue and earnings than CV.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PennyMac Mortgage Investment Trust and CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	0	6	3	0	2.33
CV	0	0	0	0	0.00

PennyMac Mortgage Investment Trust currently has a consensus target price of $13.60, suggesting a potential upside of 12.63%. Given PennyMac Mortgage Investment Trust’s stronger consensus rating and higher probable upside, analysts plainly believe PennyMac Mortgage Investment Trust is more favorable than CV.

Profitability

This table compares PennyMac Mortgage Investment Trust and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	41.59%	9.53%	0.71%
CV	N/A	N/A	N/A

Summary

PennyMac Mortgage Investment Trust beats CV on 9 of the 11 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. 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, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.

About CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.