Invesco Mortgage Capital (NYSE:IVR) vs. CV (OTCMKTS:CVHL) Critical Review

Invesco Mortgage Capital (NYSE:IVR) and CV (OTCMKTS:CVHL) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Earnings & Valuation

This table compares Invesco Mortgage Capital and CV”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco Mortgage Capital	$277.93 million	1.96	-$15.86 million	$1.20	7.46
CV	$23.58 million	0.03	-$15.96 million	N/A	N/A

Invesco Mortgage Capital has higher revenue and earnings than CV.

Profitability

This table compares Invesco Mortgage Capital and CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco Mortgage Capital	30.67%	36.90%	3.50%
CV	N/A	N/A	N/A

Risk & Volatility

Invesco Mortgage Capital has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, CV has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Invesco Mortgage Capital and CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Mortgage Capital	0	1	1	0	2.50
CV	0	0	0	0	0.00

Invesco Mortgage Capital presently has a consensus target price of $10.00, suggesting a potential upside of 11.67%. Given Invesco Mortgage Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Invesco Mortgage Capital is more favorable than CV.

Insider & Institutional Ownership

40.5% of Invesco Mortgage Capital shares are held by institutional investors. 0.2% of Invesco Mortgage Capital shares are held by insiders. Comparatively, 7.6% of CV shares are held by 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.

Summary

Invesco Mortgage Capital beats CV on 11 of the 12 factors compared between the two stocks.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that invests, finances, and manages mortgage-backed securities and other mortgage-related assets in the United States. It invests in residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) that are guaranteed by a U.S. government agency or federally chartered corporation; RMBS and CMBS that are not issued or guaranteed by the United States government agency or federally chartered corporation; the United States treasury securities; real estate-related financing arrangements; to-be-announced securities forward contracts to purchase RMBS; and commercial mortgage loans. It has elected to be taxed as a REIT and would be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

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.