Head to Head Review: Education Realty Trust (EDR) vs. Apartment Investment and Management (AIV)
Education Realty Trust (NYSE: EDR) and Apartment Investment and Management (NYSE:AIV) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
This is a breakdown of current recommendations and price targets for Education Realty Trust and Apartment Investment and Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Education Realty Trust||1||6||4||0||2.27|
|Apartment Investment and Management||2||4||2||0||2.00|
Education Realty Trust currently has a consensus price target of $43.00, indicating a potential upside of 19.68%. Apartment Investment and Management has a consensus price target of $46.38, indicating a potential upside of 5.73%. Given Education Realty Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Education Realty Trust is more favorable than Apartment Investment and Management.
Volatility and Risk
Education Realty Trust has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Valuation & Earnings
This table compares Education Realty Trust and Apartment Investment and Management’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Education Realty Trust||$310.48 million||8.47||$143.74 million||$0.42||85.55|
|Apartment Investment and Management||$980.21 million||7.03||$576.30 million||$1.27||34.54|
Apartment Investment and Management has higher revenue and earnings than Education Realty Trust. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Education Realty Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Education Realty Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Education Realty Trust||10.58%||1.83%||1.25%|
|Apartment Investment and Management||20.64%||12.46%||3.29%|
Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 4.3%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. Education Realty Trust pays out 371.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out 113.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Education Realty Trust has increased its dividend for 6 consecutive years and Apartment Investment and Management has increased its dividend for 6 consecutive years.
Institutional and Insider Ownership
98.3% of Apartment Investment and Management shares are held by institutional investors. 0.5% of Education Realty Trust shares are held by insiders. Comparatively, 1.2% of Apartment Investment and Management shares are held 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.
Apartment Investment and Management beats Education Realty Trust on 10 of the 16 factors compared between the two stocks.
Education Realty Trust Company Profile
Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.
Apartment Investment and Management Company Profile
Apartment Investment and Management Company (Aimco) is a self-administered and self-managed real estate investment trust (REIT). Aimco, through its subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, holds the ownership interests in the Aimco Operating Partnership. It operates through two segments: conventional real estate and affordable real estate. As of December 31, 2016, its real estate portfolio consisted of 189 apartment communities with 46,311 apartment homes. Aimco Operating Partnership conducts the Company’s business, which is focused on the ownership, management, redevelopment and limited development of apartment communities located in the coastal and job growth markets of the United States. Its Conventional segment consists of apartment communities it classifies as Conventional Same Store and Conventional Non-Same Store. Its affordable portfolio consists primarily of apartment communities that it manages that are owned through low-income housing tax credit partnerships.
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