Equity Lifestyle Properties (NYSE: ELS) and American Residential Properties (NYSE:ARPI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitabiliy, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

96.4% of Equity Lifestyle Properties shares are held by institutional investors. 6.1% of Equity Lifestyle Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Equity Lifestyle Properties and American Residential Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Lifestyle Properties 21.87% 20.44% 5.55%
American Residential Properties -38.70% -9.17% -3.64%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Equity Lifestyle Properties and American Residential Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Lifestyle Properties 1 3 1 0 2.00
American Residential Properties 0 0 0 0 N/A

Equity Lifestyle Properties presently has a consensus price target of $77.10, suggesting a potential downside of 10.70%. Given Equity Lifestyle Properties’ higher probable upside, research analysts plainly believe Equity Lifestyle Properties is more favorable than American Residential Properties.

Earnings & Valuation

This table compares Equity Lifestyle Properties and American Residential Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Equity Lifestyle Properties $885.55 million 8.47 $421.88 million $1.98 43.61
American Residential Properties N/A N/A N/A N/A N/A

Equity Lifestyle Properties has higher revenue and earnings than American Residential Properties.

Dividends

Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.3%. American Residential Properties does not pay a dividend. Equity Lifestyle Properties pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Residential Properties has raised its dividend for 6 consecutive years.

Summary

Equity Lifestyle Properties beats American Residential Properties on 9 of the 11 factors compared between the two stocks.

About Equity Lifestyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust (REIT). The Company is an owner and operator of lifestyle-oriented properties (properties) consisting primarily of manufactured home (MH) communities and recreational vehicle (RV) resorts and campgrounds. The Company operates through two segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the properties. It leases individual developed areas (sites) with access to utilities for placement of factory built homes, cottages, cabins or RVs. As of December 31, 2016, the Company’s property portfolio included 391 properties consisted of 146,610 residential sites. Its properties are designed for home options of various sizes and designs that are produced off-site by third-party manufacturers, installed and set on designated sites within the properties.

About American Residential Properties

American Residential Properties, Inc. is an internally managed real estate investment company, which is organized as a real estate investment trust. The Company acquires, owns, renovates, and manages single-family homes as rental properties. American Residential Properties OP, L.P. acts as its operating partnership. American Residential Leasing Company, LLC is a wholly owned subsidiary of its operating partnership. The Company owns 8,893 properties in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee and Texas that were 81% leased, and it managed an additional 437 properties for ARP Phoenix Fund I, LP in Arizona and Nevada. In addition to its primary business, the Company has a private mortgage financing business.

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