Mid-America Apartment Communities (NYSE: MAA) and Silver Bay Realty Trust Corp (NYSE:SBY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Insider and Institutional Ownership

91.8% of Mid-America Apartment Communities shares are held by institutional investors. Comparatively, 73.6% of Silver Bay Realty Trust Corp shares are held by institutional investors. 1.3% of Mid-America Apartment Communities shares are held by insiders. Comparatively, 7.3% of Silver Bay Realty Trust Corp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Mid-America Apartment Communities and Silver Bay Realty Trust Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mid-America Apartment Communities 0 1 8 0 2.89
Silver Bay Realty Trust Corp 0 4 0 0 2.00

Mid-America Apartment Communities currently has a consensus target price of $108.67, suggesting a potential upside of 2.30%. Silver Bay Realty Trust Corp has a consensus target price of $19.83, suggesting a potential downside of 7.71%. Given Mid-America Apartment Communities’ stronger consensus rating and higher possible upside, analysts plainly believe Mid-America Apartment Communities is more favorable than Silver Bay Realty Trust Corp.

Earnings and Valuation

This table compares Mid-America Apartment Communities and Silver Bay Realty Trust Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mid-America Apartment Communities $1.35 billion 8.94 $761.51 million $2.34 45.39
Silver Bay Realty Trust Corp N/A N/A N/A ($0.16) -134.31

Mid-America Apartment Communities has higher revenue and earnings than Silver Bay Realty Trust Corp. Silver Bay Realty Trust Corp is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mid-America Apartment Communities has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Silver Bay Realty Trust Corp has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares Mid-America Apartment Communities and Silver Bay Realty Trust Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mid-America Apartment Communities 15.80% 4.31% 2.38%
Silver Bay Realty Trust Corp -5.71% -1.42% -0.61%

Dividends

Mid-America Apartment Communities pays an annual dividend of $3.48 per share and has a dividend yield of 3.3%. Silver Bay Realty Trust Corp pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Mid-America Apartment Communities pays out 148.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust Corp pays out -325.0% of its earnings in the form of a dividend. Mid-America Apartment Communities has raised its dividend for 3 consecutive years and Silver Bay Realty Trust Corp has raised its dividend for 6 consecutive years.

Summary

Mid-America Apartment Communities beats Silver Bay Realty Trust Corp on 10 of the 14 factors compared between the two stocks.

About Mid-America Apartment Communities

Mid-America Apartment Communities, Inc. is a multifamily focused, self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and develops apartment communities primarily located in the Southeast and Southwest regions of the United States. It operates through three segments: Large market same store, Secondary market same store and Non-Same Store and Other. Its Large market same store communities are communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units that it has owned. Its Secondary market same store communities are communities in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or markets with populations of less than one million that it has owned. Its Non-same store communities and other includes recent acquisitions and communities in development or lease-up communities.

About Silver Bay Realty Trust Corp

Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.

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