Financial Survey: Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) & American Homes 4 Rent (NYSE:AMH)

Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) and American Homes 4 Rent (NYSE:AMH) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Boardwalk Real Estate Investment Trust and American Homes 4 Rent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boardwalk Real Estate Investment Trust	0	1	0	0	2.00
American Homes 4 Rent	0	11	8	0	2.42

American Homes 4 Rent has a consensus target price of $34.94, indicating a potential upside of 9.15%. Given American Homes 4 Rent’s stronger consensus rating and higher possible upside, analysts plainly believe American Homes 4 Rent is more favorable than Boardwalk Real Estate Investment Trust.

Valuation & Earnings

This table compares Boardwalk Real Estate Investment Trust and American Homes 4 Rent”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boardwalk Real Estate Investment Trust	$457.06 million	4.98	$140.90 million	$0.60	79.47
American Homes 4 Rent	$1.85 billion	6.29	$452.97 million	$1.23	26.03

American Homes 4 Rent has higher revenue and earnings than Boardwalk Real Estate Investment Trust. American Homes 4 Rent is trading at a lower price-to-earnings ratio than Boardwalk Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Boardwalk Real Estate Investment Trust and American Homes 4 Rent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boardwalk Real Estate Investment Trust	8.97%	1.17%	0.65%
American Homes 4 Rent	25.27%	6.08%	3.54%

Insider & Institutional Ownership

91.9% of American Homes 4 Rent shares are held by institutional investors. 19.0% of Boardwalk Real Estate Investment Trust shares are held by company insiders. Comparatively, 5.7% of American Homes 4 Rent shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Boardwalk Real Estate Investment Trust pays an annual dividend of $1.33 per share and has a dividend yield of 2.8%. American Homes 4 Rent pays an annual dividend of $1.32 per share and has a dividend yield of 4.1%. Boardwalk Real Estate Investment Trust pays out 221.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Homes 4 Rent pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Homes 4 Rent has increased its dividend for 5 consecutive years. American Homes 4 Rent is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Boardwalk Real Estate Investment Trust has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Summary

American Homes 4 Rent beats Boardwalk Real Estate Investment Trust on 14 of the 17 factors compared between the two stocks.

About Boardwalk Real Estate Investment Trust

Boardwalk REIT strives to be Canada’s friendliest community provider and is a leading owner/operator of multi-family rental communities. Providing homes in more than 200 communities, with over 34,000 residential suites totaling over 29 million net rentable square feet, Boardwalk has a proven long-term track record of building better communities, where love always lives. Our three-tiered and distinct brands: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, cater to a large diverse demographic and has evolved to capture the life cycle of all Resident Members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, purposeful re-positioning, and management of apartment communities allows the Trust to provide its brand of community across Canada creating exceptional Resident Member experiences. Differentiated by its peak performance culture, Boardwalk is committed to delivering exceptional service, product quality and experience to our Resident Members who reward us with high retention and market leading operating results, which in turn, lead to higher free cash flow and investment returns, stable monthly distributions, and value creation for all our stakeholders. Boardwalk REIT’s Trust Units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN.

About American Homes 4 Rent

American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.