Camden Property Trust (CPT) & Apartment Investment and Management (AIV) Head-To-Head Contrast
Camden Property Trust (NYSE: CPT) and Apartment Investment and Management (NYSE:AIV) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Institutional and Insider Ownership
95.5% of Camden Property Trust shares are held by institutional investors. Comparatively, 98.3% of Apartment Investment and Management shares are held by institutional investors. 4.7% of Camden Property 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 will outperform the market over the long term.
Valuation and Earnings
This table compares Camden Property Trust and Apartment Investment and Management’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Camden Property Trust||$897.76 million||9.15||$506.29 million||$4.47||20.96|
|Apartment Investment and Management||$980.21 million||7.28||$576.30 million||$1.27||35.78|
Apartment Investment and Management has higher revenue and earnings than Camden Property Trust. Camden Property Trust is trading at a lower price-to-earnings ratio than Apartment Investment and Management, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Camden Property Trust and Apartment Investment and Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camden Property Trust||0||4||9||0||2.69|
|Apartment Investment and Management||2||4||2||0||2.00|
Camden Property Trust presently has a consensus price target of $91.69, suggesting a potential downside of 2.15%. Apartment Investment and Management has a consensus price target of $46.38, suggesting a potential upside of 2.06%. Given Apartment Investment and Management’s higher probable upside, analysts plainly believe Apartment Investment and Management is more favorable than Camden Property Trust.
Volatility & Risk
Camden Property Trust has a beta of 0.38, meaning that its share price is 62% 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.
This table compares Camden Property Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camden Property Trust||46.10%||13.17%||6.81%|
|Apartment Investment and Management||20.64%||12.46%||3.29%|
Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. Camden Property Trust pays out 67.1% of its earnings in the form of a dividend. 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. Camden Property Trust has increased its dividend for 6 consecutive years and Apartment Investment and Management has increased its dividend for 6 consecutive years. Camden Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Camden Property Trust beats Apartment Investment and Management on 11 of the 16 factors compared between the two stocks.
Camden Property Trust Company Profile
Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.
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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