American Homes 4 Rent (NYSE: AMH) is one of 43 publicly-traded companies in the “Residential REITs” industry, but how does it compare to its peers? We will compare American Homes 4 Rent to related companies based on the strength of its analyst recommendations, institutional ownership, risk, earnings, dividends, valuation and profitability.

Profitability

This table compares American Homes 4 Rent and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Homes 4 Rent 3.82% 0.70% 0.43%
American Homes 4 Rent Competitors 17.27% 5.14% 1.93%

Insider & Institutional Ownership

93.7% of American Homes 4 Rent shares are held by institutional investors. Comparatively, 77.9% of shares of all “Residential REITs” companies are held by institutional investors. 27.8% of American Homes 4 Rent shares are held by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares American Homes 4 Rent and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Homes 4 Rent $934.38 million $473.25 million -198.45
American Homes 4 Rent Competitors $702.65 million $394.70 million 0.58

American Homes 4 Rent has higher revenue and earnings than its peers. American Homes 4 Rent is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

American Homes 4 Rent pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. American Homes 4 Rent pays out -181.8% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.3% and pay out 119.7% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for American Homes 4 Rent and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Homes 4 Rent 0 3 3 0 2.50
American Homes 4 Rent Competitors 287 1333 1269 36 2.36

American Homes 4 Rent currently has a consensus price target of $24.80, indicating a potential upside of 13.61%. As a group, “Residential REITs” companies have a potential upside of 1.24%. Given American Homes 4 Rent’s stronger consensus rating and higher possible upside, research analysts plainly believe American Homes 4 Rent is more favorable than its peers.

Risk and Volatility

American Homes 4 Rent has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, American Homes 4 Rent’s peers have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Summary

American Homes 4 Rent beats its peers on 10 of the 15 factors compared.

About American Homes 4 Rent

American Homes 4 Rent is an internally managed real estate investment trust (REIT) focused on acquiring, renovating, leasing and operating single-family homes as rental properties. The Company’s primary objective is to generate attractive risk-adjusted returns for its shareholders through dividends and capital appreciation by acquiring, renovating, leasing and operating single-family homes as rental properties. As of December 31, 2016, it owned 48,422 single-family properties in 22 states, including 1,119 properties held for sale, and had an additional 47 properties in escrow that it intended to acquire. Its integrated operating platform offers property management, acquisitions, construction, marketing, leasing, financial and administrative functions. The Company may seek to invest in condominium units, townhouses and real estate-related debt investments. The Company is externally managed and advised by American Homes 4 Rent Advisor, LLC (the Advisor).

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