Sun Communities (NYSE: SUI) is one of 44 publicly-traded companies in the “Residential REITs” industry, but how does it weigh in compared to its peers? We will compare Sun Communities to related companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

94.3% of Sun Communities shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 4.2% of Sun Communities shares are owned by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Sun Communities has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Sun Communities’ peers have a beta of 0.57, suggesting that their average share price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Sun Communities and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Communities 0 2 4 0 2.67
Sun Communities Competitors 288 1345 1284 36 2.36

Sun Communities presently has a consensus price target of $89.00, indicating a potential upside of 3.02%. As a group, “Residential REITs” companies have a potential upside of 1.55%. Given Sun Communities’ stronger consensus rating and higher probable upside, analysts plainly believe Sun Communities is more favorable than its peers.

Profitability

This table compares Sun Communities and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sun Communities 6.82% 2.59% 1.07%
Sun Communities Competitors 18.59% 5.04% 1.96%

Dividends

Sun Communities pays an annual dividend of $2.68 per share and has a dividend yield of 3.1%. Sun Communities pays out 382.9% 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 3.4% and pay out 119.1% of their earnings in the form of a dividend. Sun Communities lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Sun Communities and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sun Communities $936.86 million $443.91 million 123.42
Sun Communities Competitors $702.65 million $394.70 million 0.23

Sun Communities has higher revenue and earnings than its peers. Sun Communities is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Sun Communities peers beat Sun Communities on 8 of the 15 factors compared.

Sun Communities Company Profile

Sun Communities, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is a fully integrated real estate company, which, together with its affiliates and predecessors, has been in the business of acquiring, operating, developing, and expanding manufactured housing (MH) and recreational vehicle (RV). As of December 31, 2016, it owned and operated or had an interest in a portfolio of properties located throughout the United States and Ontario, Canada, including 226 MH communities, 87 RV communities, and 28 properties containing both MH and RV sites. The Company operates through two segments: Real Property Operations and Home Sales and Rentals. The Real Property Operations segment owns, operates, or has an interest in a portfolio, and develops MH communities and RV communities throughout the United States and is in the business of acquiring, operating, and expanding MH and RV communities.

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