Critical Comparison: BRT Realty Trust (BRT) and Apartment Investment and Management (AIV)
BRT Realty Trust (NYSE: BRT) and Apartment Investment and Management (NYSE:AIV) are both residential reits companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
Volatility & Risk
BRT Realty Trust has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
BRT Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 6.6%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. BRT Realty Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out 464.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management has increased its dividend for 6 consecutive years. BRT Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and price targets for BRT Realty Trust and Apartment Investment and Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BRT Realty Trust||0||1||2||0||2.67|
|Apartment Investment and Management||1||4||2||0||2.14|
BRT Realty Trust currently has a consensus target price of $11.13, indicating a potential upside of 1.23%. Apartment Investment and Management has a consensus target price of $47.29, indicating a potential upside of 7.01%. Given Apartment Investment and Management’s higher probable upside, analysts clearly believe Apartment Investment and Management is more favorable than BRT Realty Trust.
Earnings and Valuation
This table compares BRT Realty Trust and Apartment Investment and Management’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|BRT Realty Trust||$94.26 million||1.63||$31.28 million||$0.80||13.74|
|Apartment Investment and Management||$995.85 million||6.97||$430.41 million||$0.31||142.55|
Apartment Investment and Management has higher revenue and earnings than BRT Realty Trust. BRT Realty Trust 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.
This table compares BRT Realty Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BRT Realty Trust||10.81%||5.07%||1.24%|
|Apartment Investment and Management||21.36%||13.81%||3.45%|
Insider & Institutional Ownership
22.3% of BRT Realty Trust shares are held by institutional investors. Comparatively, 100.0% of Apartment Investment and Management shares are held by institutional investors. 41.9% of BRT Realty Trust shares are held by company insiders. Comparatively, 1.2% of Apartment Investment and Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Apartment Investment and Management beats BRT Realty Trust on 11 of the 16 factors compared between the two stocks.
About BRT Realty Trust
BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.
About Apartment Investment and Management
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.
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