Apartment Investment and Management (NYSE: AIV) and New Senior Investment Group (NYSE:SNR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Apartment Investment and Management and New Senior Investment Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apartment Investment and Management 2 4 2 0 2.00
New Senior Investment Group 1 2 1 0 2.00

Apartment Investment and Management currently has a consensus price target of $46.38, suggesting a potential upside of 5.69%. New Senior Investment Group has a consensus price target of $9.67, suggesting a potential upside of 4.62%. Given Apartment Investment and Management’s higher probable upside, analysts clearly believe Apartment Investment and Management is more favorable than New Senior Investment Group.

Profitability

This table compares Apartment Investment and Management and New Senior Investment Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apartment Investment and Management 20.64% 12.46% 3.29%
New Senior Investment Group -6.41% -5.28% -1.06%

Insider and Institutional Ownership

98.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 64.3% of New Senior Investment Group shares are owned by institutional investors. 1.2% of Apartment Investment and Management shares are owned by insiders. Comparatively, 1.0% of New Senior Investment Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Apartment Investment and Management and New Senior Investment Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Apartment Investment and Management $980.21 million 7.03 $576.30 million $1.27 34.55
New Senior Investment Group $465.21 million 1.63 $188.75 million ($0.36) -25.67

Apartment Investment and Management has higher revenue and earnings than New Senior Investment Group. New Senior Investment Group is trading at a lower price-to-earnings ratio than Apartment Investment and Management, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Apartment Investment and Management has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, New Senior Investment Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Dividends

Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. New Senior Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 11.3%. Apartment Investment and Management pays out 113.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Senior Investment Group pays out -288.9% of its earnings in the form of a dividend. New Senior Investment Group has increased its dividend for 6 consecutive years. New Senior Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Apartment Investment and Management beats New Senior Investment Group on 12 of the 16 factors compared between the two stocks.

Apartment Investment and Management Company Profile

Apartment Investment and Management Company (Aimco) is a self-administered and self-managed real estate investment trust (REIT). Aimco, through its subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, holds the ownership interests in the Aimco Operating Partnership. It operates through two segments: conventional real estate and affordable real estate. As of December 31, 2016, its real estate portfolio consisted of 189 apartment communities with 46,311 apartment homes. Aimco Operating Partnership conducts the Company’s business, which is focused on the ownership, management, redevelopment and limited development of apartment communities located in the coastal and job growth markets of the United States. Its Conventional segment consists of apartment communities it classifies as Conventional Same Store and Conventional Non-Same Store. Its affordable portfolio consists primarily of apartment communities that it manages that are owned through low-income housing tax credit partnerships.

New Senior Investment Group Company Profile

New Senior Investment Group Inc. is a real estate investment trust with a diversified portfolio of primarily private pay senior housing properties located across the United States. The Company operates through two segments: Managed Properties and Triple Net Lease Properties. As of December 31, 2016, the Company owned a diversified portfolio of 152 primarily private pay senior housing properties located across 37 states. Under its Managed Properties segment, the Company invests in senior housing properties throughout the United States and engages property managers to manage those senior housing properties. As of December 31, 2016, the Company owned 94 properties under property management agreements with the property managers. Under its Triple Net Lease Properties segment, the Company invests in senior housing and healthcare properties throughout the United States, and leases those properties to healthcare operating companies under triple net leases.

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