Critical Survey: Apartment Investment and Management (NYSE:AIV) & American Homes 4 Rent (NYSE:AMH)

American Homes 4 Rent (NYSE:AMH) and Apartment Investment and Management (NYSE:AIV) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares American Homes 4 Rent and Apartment Investment and Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Homes 4 Rent	25.53%	6.25%	3.63%
Apartment Investment and Management	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for American Homes 4 Rent and Apartment Investment and Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Homes 4 Rent	0	6	10	1	2.71
Apartment Investment and Management	1	0	0	0	1.00

American Homes 4 Rent currently has a consensus price target of $35.94, suggesting a potential upside of 10.12%. Given American Homes 4 Rent’s stronger consensus rating and higher probable upside, research analysts plainly believe American Homes 4 Rent is more favorable than Apartment Investment and Management.

Volatility and Risk

American Homes 4 Rent has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

91.9% of American Homes 4 Rent shares are held by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are held by institutional investors. 5.7% of American Homes 4 Rent shares are held by insiders. Comparatively, 3.9% of Apartment Investment and Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares American Homes 4 Rent and Apartment Investment and Management”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Homes 4 Rent	$1.88 billion	6.27	$452.97 million	$1.26	25.90
Apartment Investment and Management	$138.49 million	1.77	$554.01 million	$3.88	0.43

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

Summary

American Homes 4 Rent beats Apartment Investment and Management on 12 of the 15 factors compared between the two stocks.

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.

About Apartment Investment and Management

Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.