Head to Head Comparison: Home Properties (HME) vs. Equity Lifestyle Properties (ELS)
Home Properties (NYSE: HME) and Equity Lifestyle Properties (NYSE:ELS) are both financials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.
Insider & Institutional Ownership
95.7% 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, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Home Properties and Equity Lifestyle Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Equity Lifestyle Properties||1||3||0||0||1.75|
Equity Lifestyle Properties has a consensus target price of $85.50, indicating a potential downside of 2.26%. Given Equity Lifestyle Properties’ higher possible upside, analysts clearly believe Equity Lifestyle Properties is more favorable than Home Properties.
Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.2%. Home Properties does not pay a dividend. Equity Lifestyle Properties pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Home Properties has raised its dividend for 6 consecutive years and Equity Lifestyle Properties has raised its dividend for 6 consecutive years.
This table compares Home Properties and Equity Lifestyle Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Equity Lifestyle Properties||22.52%||21.39%||5.89%|
Earnings & Valuation
This table compares Home Properties and Equity Lifestyle Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Equity Lifestyle Properties||$897.06 million||8.48||$426.41 million||$2.09||41.86|
Equity Lifestyle Properties has higher revenue and earnings than Home Properties.
Equity Lifestyle Properties beats Home Properties on 8 of the 9 factors compared between the two stocks.
About Home Properties
Home Properties, Inc. (Home Properties) is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and repositions apartment communities in suburbs of metropolitan areas, primarily along the East Coast of the United States. The Company conducts its business through Home Properties, L.P. (the Operating Partnership), and a management company, Home Properties Resident Services, Inc. (HPRS). As of December 31, 2014, the Company owned and operated 121 communities with 42,107 apartment units. The Company’s properties are two- and three-story garden style apartment buildings in landscaped settings and brick or other masonry construction. As of December 31, 2014, approximately 26.6%, 24.9%, 14.0%, 8.5% and 8.5% of the Company’s Properties are located in the Washington, D.C., Baltimore, Philadelphia, Long Island and Northern New Jersey markets, respectively.
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.
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