Head to Head Analysis: Invitation Home (INVH) vs. The Competition

Invitation Home (NYSE:INVH) is one of 30 publicly-traded companies in the “REIT – EQTY TRUST – RESID” industry, but how does it weigh in compared to its peers? We will compare Invitation Home to related companies based on the strength of its profitability, analyst recommendations, dividends, risk, earnings, institutional ownership and valuation.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Invitation Home pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “REIT – EQTY TRUST – RESID” companies pay a dividend yield of 3.8% and pay out 201.2% of their earnings in the form of a dividend. Invitation Home has raised its dividend for 1 consecutive years.

Profitability

This table compares Invitation Home and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	18.01%	4.82%	2.51%
Invitation Home Competitors	4.78%	0.70%	1.01%

Analyst Ratings

This is a breakdown of current ratings and price targets for Invitation Home and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	9	0	2.50
Invitation Home Competitors	392	2262	2132	39	2.38

Invitation Home currently has a consensus target price of $37.97, suggesting a potential upside of 11.52%. As a group, “REIT – EQTY TRUST – RESID” companies have a potential upside of 13.83%. Given Invitation Home’s peers higher probable upside, analysts clearly believe Invitation Home has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Invitation Home and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Home	$2.62 billion	$453.92 million	44.22
Invitation Home Competitors	$985.55 million	$190.00 million	22.79

Invitation Home has higher revenue and earnings than its peers. Invitation Home is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 79.8% of shares of all “REIT – EQTY TRUST – RESID” companies are owned by institutional investors. 0.3% of Invitation Home shares are owned by insiders. Comparatively, 5.9% of shares of all “REIT – EQTY TRUST – RESID” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Invitation Home has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Invitation Home’s peers have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Summary

Invitation Home beats its peers on 11 of the 15 factors compared.

Invitation Home Company Profile

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.