Apartment Investment and Management (NYSE:AIV) and Mid-America Apartment Communities (NYSE:MAA) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Risk & Volatility
Apartment Investment and Management has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Institutional and Insider Ownership
86.4% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 91.7% of Mid-America Apartment Communities shares are owned by institutional investors. 1.4% of Apartment Investment and Management shares are owned by insiders. Comparatively, 1.4% of Mid-America Apartment Communities shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Apartment Investment and Management and Mid-America Apartment Communities' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Apartment Investment and Management | 17.37% | 0.45% | 0.12% |
| Mid-America Apartment Communities | 15.76% | 4.33% | 2.37% |
Dividends
Apartment Investment and Management pays an annual dividend of $1.52 per share and has a dividend yield of 20.3%. Mid-America Apartment Communities pays an annual dividend of $4.10 per share and has a dividend yield of 2.4%. Mid-America Apartment Communities pays out 63.8% of its earnings in the form of a dividend. Mid-America Apartment Communities has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a summary of current ratings and recommmendations for Apartment Investment and Management and Mid-America Apartment Communities, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Apartment Investment and Management | 1 | 7 | 0 | 0 | 1.88 |
| Mid-America Apartment Communities | 0 | 4 | 5 | 0 | 2.56 |
Apartment Investment and Management presently has a consensus price target of $39.00, indicating a potential upside of 421.39%. Mid-America Apartment Communities has a consensus price target of $151.8182, indicating a potential downside of 11.21%. Given Apartment Investment and Management's higher possible upside, equities analysts plainly believe Apartment Investment and Management is more favorable than Mid-America Apartment Communities.
Earnings & Valuation
This table compares Apartment Investment and Management and Mid-America Apartment Communities' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Apartment Investment and Management | $151.45 million | 7.41 | $-5,040,000.00 | N/A | N/A |
| Mid-America Apartment Communities | $1.68 billion | 11.67 | $254.96 million | $6.43 | 26.59 |
Mid-America Apartment Communities has higher revenue and earnings than Apartment Investment and Management.
Summary
Mid-America Apartment Communities beats Apartment Investment and Management on 10 of the 16 factors compared between the two stocks.
