Monogram Residential Trust (NYSE: MORE) and American Campus Communities (NYSE:ACC) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Monogram Residential Trust and American Campus Communities, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monogram Residential Trust 0 7 0 0 2.00
American Campus Communities 0 3 6 0 2.67

Monogram Residential Trust presently has a consensus price target of $11.75, indicating a potential downside of 2.00%. American Campus Communities has a consensus price target of $53.67, indicating a potential upside of 13.41%. Given American Campus Communities’ stronger consensus rating and higher possible upside, analysts plainly believe American Campus Communities is more favorable than Monogram Residential Trust.

Earnings and Valuation

This table compares Monogram Residential Trust and American Campus Communities’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monogram Residential Trust $291.82 million 6.86 $144.44 million $0.65 18.45
American Campus Communities $772.33 million 8.36 $379.78 million $0.49 96.57

American Campus Communities has higher revenue and earnings than Monogram Residential Trust. Monogram Residential Trust is trading at a lower price-to-earnings ratio than American Campus Communities, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monogram Residential Trust and American Campus Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monogram Residential Trust 37.63% 7.00% 3.42%
American Campus Communities 8.59% 1.90% 1.09%

Insider & Institutional Ownership

75.4% of Monogram Residential Trust shares are owned by institutional investors. 0.1% of Monogram Residential Trust shares are owned by insiders. Comparatively, 0.7% of American Campus Communities shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Monogram Residential Trust pays an annual dividend of $0.30 per share and has a dividend yield of 2.5%. American Campus Communities pays an annual dividend of $1.76 per share and has a dividend yield of 3.7%. Monogram Residential Trust pays out 46.2% of its earnings in the form of a dividend. American Campus Communities pays out 359.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monogram Residential Trust has raised its dividend for 4 consecutive years.

Risk and Volatility

Monogram Residential Trust has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, American Campus Communities has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Summary

American Campus Communities beats Monogram Residential Trust on 9 of the 17 factors compared between the two stocks.

About Monogram Residential Trust

Monogram Residential Trust, Inc. is a self-managed real estate investment trust (REIT). The Company invests in, develops and operates multifamily communities offering location and lifestyle amenities. The Company also invests in stabilized operating communities and communities in various phases of development, with a focus on communities in select markets across the United States. These include luxury high-rise, mid-rise and garden style multifamily communities. As of December 31, 2016, Monogram’s portfolio includes investments in 51 multifamily communities in 10 states comprising 14,473 residential units. As of September 30, 2016, the Company held ownership interests in equity investments, including 47 operating multifamily communities (including one development in lease up) containing 13,022 residential units in 10 states, all of which are consolidated for financial reporting purposes.

About American Campus Communities

American Campus Communities, Inc. is a self-managed and self-administered equity real estate investment trust (REIT). The Company’s segments include Wholly-Owned Properties, On-Campus Participating Properties, Development Services, and Property Management Services. It is engaged in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. The Wholly-Owned Properties segment consists of off-campus properties, which are located in close proximity to the school campus. The On-Campus Participating Properties segment includes on-campus properties that are operated under long-term ground/facility leases with three university systems. The Development Services segment consists of development and construction management services that it provides through one of its taxable REIT subsidiaries for third-party owners. The Property Management Services segment includes revenues generated from third-party management contracts.

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