Critical Survey: Colony Starwood Homes (SFR) versus The Competition
Colony Starwood Homes (NYSE: SFR) is one of 44 publicly-traded companies in the “Residential REITs” industry, but how does it weigh in compared to its peers? We will compare Colony Starwood Homes to similar businesses based on the strength of its institutional ownership, profitability, risk, earnings, analyst recommendations, valuation and dividends.
This is a breakdown of current ratings and price targets for Colony Starwood Homes and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Colony Starwood Homes||0||5||7||0||2.58|
|Colony Starwood Homes Competitors||288||1336||1274||36||2.36|
Colony Starwood Homes presently has a consensus price target of $36.58, suggesting a potential upside of 2.73%. As a group, “Residential REITs” companies have a potential upside of 2.38%. Given Colony Starwood Homes’ stronger consensus rating and higher possible upside, analysts plainly believe Colony Starwood Homes is more favorable than its peers.
This table compares Colony Starwood Homes and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Colony Starwood Homes||-5.65%||-0.81%||-0.34%|
|Colony Starwood Homes Competitors||18.92%||5.16%||1.99%|
Institutional & Insider Ownership
77.3% of shares of all “Residential REITs” companies are owned by institutional investors. 5.0% of Colony Starwood Homes 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Colony Starwood Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Colony Starwood Homes pays out -266.7% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.7% of their earnings in the form of a dividend.
Earnings and Valuation
This table compares Colony Starwood Homes and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Colony Starwood Homes||$599.75 million||$315.66 million||-107.91|
|Colony Starwood Homes Competitors||$702.65 million||$394.70 million||1.03|
Colony Starwood Homes’ peers have higher revenue and earnings than Colony Starwood Homes. Colony Starwood Homes 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.
Risk & Volatility
Colony Starwood Homes has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Colony Starwood Homes’ peers have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.
Colony Starwood Homes peers beat Colony Starwood Homes on 9 of the 15 factors compared.
About Colony Starwood Homes
Starwood Waypoint Homes, formerly Colony Starwood Homes, is an internally managed real estate investment trust (REIT). The Company was formed primarily to acquire, renovate, lease and manage residential assets in select markets across the United States. It is focused on acquiring single-family rental (SFR) homes through a variety of channels, renovating these homes to the extent necessary and leasing them to qualified residents. The Company operates through two segments, which are represented by its portfolio of SFR homes and its portfolio of NPLs owned in the joint venture with Prime Asset Fund VI, LLC (Prime). The Company identifies and pursues individual home acquisition opportunities through various sources, including multiple listing services (MLS) listings, foreclosure auctions and short sales. As of December 31, 2016, its SFR portfolio consisted of 31,684 owned homes, including 31,065 rental homes and 619 homes that it does not intend to hold for the long term.
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