Critical Comparison: Post Properties (PPS) and Equity Lifestyle Properties (ELS)
Post Properties (NYSE: PPS) and Equity Lifestyle Properties (NYSE:ELS) are both financials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
94.3% of Post Properties shares are owned by institutional investors. Comparatively, 95.7% of Equity Lifestyle Properties shares are owned by institutional investors. 2.2% of Post Properties shares are owned by company insiders. Comparatively, 6.1% of Equity Lifestyle Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Post Properties and Equity Lifestyle Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Equity Lifestyle Properties||1||2||0||0||1.67|
Equity Lifestyle Properties has a consensus price target of $83.33, suggesting a potential downside of 5.16%. Given Equity Lifestyle Properties’ higher possible upside, analysts clearly believe Equity Lifestyle Properties is more favorable than Post Properties.
This table compares Post Properties and Equity Lifestyle Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Equity Lifestyle Properties||22.00%||20.64%||5.66%|
Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.2%. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Post Properties has increased its dividend for 6 consecutive years and Equity Lifestyle Properties has increased its dividend for 6 consecutive years.
Earnings & Valuation
This table compares Post Properties and Equity Lifestyle Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Equity Lifestyle Properties||$897.06 million||8.52||$426.41 million||$2.01||43.72|
Equity Lifestyle Properties has higher revenue and earnings than Post Properties. Equity Lifestyle Properties is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Post Properties has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.
Equity Lifestyle Properties beats Post Properties on 10 of the 11 factors compared between the two stocks.
About Post Properties
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
About Equity Lifestyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust (REIT). The Company is an owner and operator of lifestyle-oriented properties (properties) consisting primarily of manufactured home (MH) communities and recreational vehicle (RV) resorts and campgrounds. The Company operates through two segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the properties. It leases individual developed areas (sites) with access to utilities for placement of factory built homes, cottages, cabins or RVs. As of December 31, 2016, the Company’s property portfolio included 391 properties consisted of 146,610 residential sites. Its properties are designed for home options of various sizes and designs that are produced off-site by third-party manufacturers, installed and set on designated sites within the properties.
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