Financial Review: Apartment Investment and Management (AIV) & The Competition

Apartment Investment and Management (NYSE:AIV) is one of 57 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its peers? We will compare Apartment Investment and Management to similar businesses based on the strength of its earnings, analyst recommendations, risk, profitability, institutional ownership, dividends and valuation.

Volatility & Risk

Apartment Investment and Management has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Apartment Investment and Management’s peers have a beta of 0.69, indicating that their average stock price is 31% less volatile than the S&P 500.

Dividends

Apartment Investment and Management pays an annual dividend of $1.30 per share and has a dividend yield of 80.5%. Apartment Investment and Management pays out 33.5% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.8% and pay out 219.6% of their earnings in the form of a dividend. Apartment Investment and Management is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Apartment Investment and Management and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Apartment Investment and Management	$138.49 million	$554.01 million	0.42
Apartment Investment and Management Competitors	$774.95 million	$238.42 million	37.15

Apartment Investment and Management’s peers have higher revenue, but lower earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Apartment Investment and Management and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	N/A	N/A	N/A
Apartment Investment and Management Competitors	8.75%	2.00%	2.16%

Analyst Recommendations

This is a breakdown of recent ratings for Apartment Investment and Management and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	1	0	0	0	1.00
Apartment Investment and Management Competitors	618	3255	3369	147	2.41

As a group, “Residential REITs” companies have a potential upside of 15.23%. Given Apartment Investment and Management’s peers stronger consensus rating and higher possible upside, analysts plainly believe Apartment Investment and Management has less favorable growth aspects than its peers.

Insider and Institutional Ownership

83.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are owned by institutional investors. 3.9% of Apartment Investment and Management shares are owned by insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Apartment Investment and Management peers beat Apartment Investment and Management on 10 of the 15 factors compared.

Apartment Investment and Management Company Profile

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.