Head-To-Head Analysis: Elme Communities (NYSE:ELME) versus Apartment Investment and Management (NYSE:AIV)

Elme Communities (NYSE:ELME) and Apartment Investment and Management (NYSE:AIV) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares Elme Communities and Apartment Investment and Management”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elme Communities	$246.96 million	6.19	-$13.10 million	($1.52)	-11.41
Apartment Investment and Management	$208.68 million	3.87	-$102.47 million	$1.72	3.26

Elme Communities has higher revenue and earnings than Apartment Investment and Management. Elme Communities 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Elme Communities and Apartment Investment and Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elme Communities	1	3	0	0	1.75
Apartment Investment and Management	1	0	1	0	2.00

Elme Communities currently has a consensus price target of $18.50, suggesting a potential upside of 6.66%. Apartment Investment and Management has a consensus price target of $10.00, suggesting a potential upside of 78.41%. Given Apartment Investment and Management’s stronger consensus rating and higher possible upside, analysts clearly believe Apartment Investment and Management is more favorable than Elme Communities.

Profitability

This table compares Elme Communities and Apartment Investment and Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elme Communities	-54.57%	-13.15%	-7.52%
Apartment Investment and Management	125.34%	-98.07%	-7.13%

Institutional and Insider Ownership

87.9% of Elme Communities shares are owned by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are owned by institutional investors. 1.4% of Elme Communities shares are owned by insiders. Comparatively, 4.0% of Apartment Investment and Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Elme Communities has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Summary

Apartment Investment and Management beats Elme Communities on 9 of the 14 factors compared between the two stocks.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.

About Apartment Investment and Management

Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.