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

Profitability

This table compares American Campus Communities and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Campus Communities 8.59% 1.90% 1.09%
American Campus Communities Competitors 18.54% 5.04% 1.96%

Dividends

American Campus Communities pays an annual dividend of $1.76 per share and has a dividend yield of 3.9%. American Campus Communities pays out 359.2% 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 3.3% and pay out 119.1% of their earnings in the form of a dividend. American Campus Communities has increased its dividend for 4 consecutive years.

Institutional and Insider Ownership

77.0% of shares of all “Residential REITs” companies are held by institutional investors. 0.7% of American Campus Communities shares are held by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares American Campus Communities and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Campus Communities $772.33 million $379.78 million 91.76
American Campus Communities Competitors $635.77 million $353.96 million 0.65

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

Volatility and Risk

American Campus Communities has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, American Campus Communities’ competitors have a beta of 0.57, indicating that their average share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for American Campus Communities and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Campus Communities 0 3 5 0 2.63
American Campus Communities Competitors 171 1112 1162 30 2.42

American Campus Communities presently has a consensus price target of $53.67, suggesting a potential upside of 19.37%. As a group, “Residential REITs” companies have a potential upside of 6.33%. Given American Campus Communities’ stronger consensus rating and higher probable upside, equities analysts clearly believe American Campus Communities is more favorable than its competitors.

Summary

American Campus Communities competitors beat American Campus Communities on 8 of the 15 factors compared.

American Campus Communities Company Profile

American Campus Communities, Inc. is a self-managed and self-administered equity real estate investment trust (REIT). The Company’s segments include Wholly-Owned Properties, On-Campus Participating Properties, Development Services, and Property Management Services. It is engaged in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. The Wholly-Owned Properties segment consists of off-campus properties, which are located in close proximity to the school campus. The On-Campus Participating Properties segment includes on-campus properties that are operated under long-term ground/facility leases with three university systems. The Development Services segment consists of development and construction management services that it provides through one of its taxable REIT subsidiaries for third-party owners. The Property Management Services segment includes revenues generated from third-party management contracts.

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