Post Properties (NYSE: PPS) is one of 44 publicly-traded companies in the “Residential REITs” industry, but how does it compare to its peers? We will compare Post Properties to similar businesses based on the strength of its profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Dividends

Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Post Properties pays out 131.5% 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, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.1% of their earnings in the form of a dividend. Post Properties has raised its dividend for 6 consecutive years. Post Properties lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Post Properties and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Post Properties N/A N/A 45.47
Post Properties Competitors $702.65 million $394.70 million 0.28

Post Properties’ peers have higher revenue and earnings than Post Properties. Post Properties 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.

Insider & Institutional Ownership

94.3% of Post Properties shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 2.2% of Post Properties shares are owned by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Post Properties and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Post Properties 17.36% 5.79% 3.07%
Post Properties Competitors 18.59% 5.04% 1.96%

Risk and Volatility

Post Properties has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Post Properties’ peers have a beta of 0.57, suggesting that their average share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Post Properties and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Post Properties 0 0 0 0 N/A
Post Properties Competitors 288 1342 1282 36 2.36

As a group, “Residential REITs” companies have a potential upside of 1.62%. Given Post Properties’ peers higher possible upside, analysts plainly believe Post Properties has less favorable growth aspects than its peers.

Summary

Post Properties peers beat Post Properties on 7 of the 10 factors compared.

Post Properties Company Profile

Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.

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