Reviewing Camden Property Trust (NYSE:CPT) and Sun Communities (NYSE:SUI)

Sun Communities (NYSE:SUI) and Camden Property Trust (NYSE:CPT) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

99.6% of Sun Communities shares are held by institutional investors. Comparatively, 97.2% of Camden Property Trust shares are held by institutional investors. 1.6% of Sun Communities shares are held by insiders. Comparatively, 1.9% of Camden Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Sun Communities pays an annual dividend of $4.48 per share and has a dividend yield of 3.8%. Camden Property Trust pays an annual dividend of $4.24 per share and has a dividend yield of 4.3%. Sun Communities pays out -72.7% of its earnings in the form of a dividend. Camden Property Trust pays out 39.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sun Communities has increased its dividend for 8 consecutive years and Camden Property Trust has increased its dividend for 4 consecutive years.

Profitability

This table compares Sun Communities and Camden Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Communities	-36.00%	5.02%	2.82%
Camden Property Trust	71.94%	26.22%	12.04%

Volatility & Risk

Sun Communities has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sun Communities and Camden Property Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Communities	1	5	9	2	2.71
Camden Property Trust	1	11	2	0	2.07

Sun Communities presently has a consensus price target of $135.65, indicating a potential upside of 14.37%. Camden Property Trust has a consensus price target of $108.73, indicating a potential upside of 9.62%. Given Sun Communities’ stronger consensus rating and higher possible upside, research analysts plainly believe Sun Communities is more favorable than Camden Property Trust.

Earnings and Valuation

This table compares Sun Communities and Camden Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Communities	$2.31 billion	6.14	$1.37 billion	($6.16)	-19.25
Camden Property Trust	$1.57 billion	6.31	$384.46 million	$10.73	9.24

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

Summary

Sun Communities beats Camden Property Trust on 9 of the 17 factors compared between the two stocks.

About Sun Communities

Sun Communities, Inc. is a real estate investment trust that owns and operates manufactured housing communities, recreational vehicle (RV) communities and resorts, and marinas. Its properties serve long-term residents as well as vacationers and boaters, with offerings that include home sites, RV accommodations, boat slips and related amenities. Founded in 1975, the company has expanded beyond its original manufactured housing business through acquisitions and development. Its portfolio spans the United States, Canada and the United Kingdom.

About Camden Property Trust

Camden Property Trust is a real estate investment trust that owns, develops, acquires and manages apartment communities. Its residential properties serve renters in markets across the United States, with a focus on major metropolitan areas. Founded in 1982 and headquartered in Houston, Texas, Camden has grown into a multifamily housing operator. Its services include leasing apartments and managing the day-to-day operations of its communities.