Preferred Apartment Communities (NASDAQ: APTS) is one of 45 public companies in the “Residential REITs” industry, but how does it compare to its rivals? We will compare Preferred Apartment Communities to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.

Volatility & Risk

Preferred Apartment Communities has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Preferred Apartment Communities’ rivals have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Profitability

This table compares Preferred Apartment Communities and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Preferred Apartment Communities 4.66% -4.73% 0.51%
Preferred Apartment Communities Competitors 25.71% 5.40% 2.03%

Dividends

Preferred Apartment Communities pays an annual dividend of $0.94 per share and has a dividend yield of 4.5%. Preferred Apartment Communities pays out -94.0% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.5% and pay out 150.4% of their earnings in the form of a dividend. Preferred Apartment Communities is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Preferred Apartment Communities and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Preferred Apartment Communities 0 2 2 0 2.50
Preferred Apartment Communities Competitors 187 1238 1322 31 2.43

Preferred Apartment Communities currently has a consensus price target of $18.25, suggesting a potential downside of 13.51%. As a group, “Residential REITs” companies have a potential upside of 7.58%. Given Preferred Apartment Communities’ rivals higher probable upside, analysts plainly believe Preferred Apartment Communities has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

77.7% of shares of all “Residential REITs” companies are held by institutional investors. 7.4% of shares of all “Residential REITs” companies 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.

Valuation & Earnings

This table compares Preferred Apartment Communities and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Preferred Apartment Communities N/A N/A -21.10
Preferred Apartment Communities Competitors $721.30 million $355.95 million 11.25

Preferred Apartment Communities’ rivals have higher revenue and earnings than Preferred Apartment Communities. Preferred Apartment Communities is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Preferred Apartment Communities rivals beat Preferred Apartment Communities on 9 of the 13 factors compared.

About Preferred Apartment Communities

Preferred Apartment Communities, Inc. is a real estate investment trust (REIT). The Company is formed to acquire and operate multifamily properties in select targeted markets throughout the United States. It operates through segments, including multifamily communities, real estate related financing, new market properties and office buildings. The multifamily communities segment consists of its portfolio of owned residential multifamily communities. The real estate related financing segment consists of the Company’s portfolio of real estate loans, bridge loans, and other instruments deployed by it to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. The new market properties segment consists of its portfolio of grocery-anchored shopping centers. The office buildings segment consists of its three office buildings located in Atlanta, Georgia and Birmingham, Alabama.

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