Financial Analysis: Altisource Residential Corporation (RESI) versus Its Competitors
Altisource Residential Corporation (NYSE: RESI) is one of 44 publicly-traded companies in the “Residential REITs” industry, but how does it compare to its rivals? We will compare Altisource Residential Corporation to related companies based on the strength of its valuation, earnings, dividends, profitability, institutional ownership, risk and analyst recommendations.
Valuation & Earnings
This table compares Altisource Residential Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Altisource Residential Corporation||$59.21 million||-$88.76 million||-2.66|
|Altisource Residential Corporation Competitors||$635.77 million||$353.96 million||1.04|
Altisource Residential Corporation’s rivals have higher revenue and earnings than Altisource Residential Corporation. Altisource Residential Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Altisource Residential Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 5.4%. Altisource Residential Corporation pays out -14.4% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.3% and pay out 119.7% of their earnings in the form of a dividend. Altisource Residential Corporation has raised its dividend for 3 consecutive years. Altisource Residential Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
73.5% of Altisource Residential Corporation shares are owned by institutional investors. Comparatively, 77.9% of shares of all “Residential REITs” companies are owned by institutional investors. 0.1% of Altisource Residential Corporation shares are owned by insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for Altisource Residential Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altisource Residential Corporation||0||4||5||0||2.56|
|Altisource Residential Corporation Competitors||288||1334||1273||36||2.36|
Altisource Residential Corporation currently has a consensus target price of $15.50, indicating a potential upside of 40.27%. As a group, “Residential REITs” companies have a potential upside of 0.05%. Given Altisource Residential Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Altisource Residential Corporation is more favorable than its rivals.
Volatility & Risk
Altisource Residential Corporation has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Altisource Residential Corporation’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.
This table compares Altisource Residential Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altisource Residential Corporation||-378.17%||-21.82%||-8.37%|
|Altisource Residential Corporation Competitors||17.21%||4.91%||1.95%|
Altisource Residential Corporation rivals beat Altisource Residential Corporation on 8 of the 14 factors compared.
Altisource Residential Corporation Company Profile
Altisource Residential Corporation is a real estate investment trust (REIT). The Company focuses on acquiring, owning and managing single-family rental (SFR) properties throughout the United States. The Company conducts its activities through its subsidiary, Altisource Residential, L.P., and its subsidiaries. The Company also converts a portion of the real estate owned (REO) properties that it acquires through resolution of its mortgage loans into SFR properties. The Company has also entered into property management service agreements with two third-party property managers: Altisource Portfolio Solutions, SA (ASPS) and Main Street Renewal, LLC (MSR), to provide, among other things, leasing and lease management, operations, maintenance, repair and property management services in respect of its SFR portfolios. As of December 31, 2016, the Company had 10,533 properties, consisting of 9,939 properties held for use and 594 held for sale.
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