Invitation Homes (INVH) vs. Its Peers Head-To-Head Review

Invitation Homes (NYSE:INVH) is one of 57 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its competitors? We will compare Invitation Homes to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares Invitation Homes and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Homes	$2.73 billion	$587.92 million	23.31
Invitation Homes Competitors	$774.98 million	$238.42 million	37.46

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

Volatility & Risk

Invitation Homes has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Invitation Homes’ competitors have a beta of 0.69, meaning that their average stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Invitation Homes and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Homes	1	9	11	0	2.48
Invitation Homes Competitors	618	3257	3373	147	2.41

Invitation Homes currently has a consensus price target of $32.00, indicating a potential upside of 20.40%. As a group, “Residential REITs” companies have a potential upside of 13.85%. Given Invitation Homes’ stronger consensus rating and higher probable upside, research analysts clearly believe Invitation Homes is more favorable than its competitors.

Profitability

This table compares Invitation Homes and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Homes	23.54%	7.62%	3.75%
Invitation Homes Competitors	8.72%	2.05%	2.18%

Dividends

Invitation Homes pays an annual dividend of $1.20 per share and has a dividend yield of 4.5%. Invitation Homes pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 4.8% and pay out 225.1% of their earnings in the form of a dividend. Invitation Homes has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

96.8% of Invitation Homes shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are owned by institutional investors. 0.3% of Invitation Homes shares are owned by insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Invitation Homes beats its competitors on 11 of the 15 factors compared.

Invitation Homes Company Profile

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.