Home Properties (NYSE: HME) and UMH Properties (NYSE:UMH) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitabiliy.

Profitability

This table compares Home Properties and UMH Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Home Properties 18.18% 6.60% 2.87%
UMH Properties 1.02% 0.82% 0.16%

Valuation and Earnings

This table compares Home Properties and UMH Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Home Properties N/A N/A N/A N/A N/A
UMH Properties $102.16 million 5.08 $40.91 million ($0.09) -184.20

UMH Properties has higher revenue and earnings than Home Properties.

Insider & Institutional Ownership

45.5% of UMH Properties shares are held by institutional investors. 11.6% of UMH Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. Home Properties does not pay a dividend. UMH Properties pays out -799.9% of its earnings in the form of a dividend. UMH Properties has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Home Properties and UMH Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Home Properties 0 0 0 0 N/A
UMH Properties 0 0 3 0 3.00

UMH Properties has a consensus price target of $19.17, suggesting a potential upside of 15.60%. Given UMH Properties’ higher probable upside, analysts plainly believe UMH Properties is more favorable than Home Properties.

Summary

UMH Properties beats Home Properties on 8 of the 11 factors compared between the two stocks.

Home Properties Company Profile

Home Properties, Inc. (Home Properties) is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and repositions apartment communities in suburbs of metropolitan areas, primarily along the East Coast of the United States. The Company conducts its business through Home Properties, L.P. (the Operating Partnership), and a management company, Home Properties Resident Services, Inc. (HPRS). As of December 31, 2014, the Company owned and operated 121 communities with 42,107 apartment units. The Company’s properties are two- and three-story garden style apartment buildings in landscaped settings and brick or other masonry construction. As of December 31, 2014, approximately 26.6%, 24.9%, 14.0%, 8.5% and 8.5% of the Company’s Properties are located in the Washington, D.C., Baltimore, Philadelphia, Long Island and Northern New Jersey markets, respectively.

UMH Properties Company Profile

UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of May 31, 2017, the Company owned 107 manufactured home communities consisting of approximately 19,400 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.

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