Armada Hoffler Properties (NYSE: AHH) is one of 87 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its peers? We will compare Armada Hoffler Properties to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Dividends

Armada Hoffler Properties pays an annual dividend of $0.76 per share and has a dividend yield of 5.4%. Armada Hoffler Properties pays out 158.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 204.0% of their earnings in the form of a dividend. Armada Hoffler Properties has increased its dividend for 3 consecutive years. Armada Hoffler Properties is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings for Armada Hoffler Properties and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armada Hoffler Properties 0 2 3 0 2.60
Armada Hoffler Properties Competitors 633 2498 2176 23 2.30

Armada Hoffler Properties presently has a consensus price target of $14.70, indicating a potential upside of 3.59%. As a group, “Commercial REITs” companies have a potential upside of 7.48%. Given Armada Hoffler Properties’ peers higher possible upside, analysts plainly believe Armada Hoffler Properties has less favorable growth aspects than its peers.

Institutional and Insider Ownership

81.4% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 69.5% of shares of all “Commercial REITs” companies are owned by institutional investors. 16.6% of Armada Hoffler Properties shares are owned by insiders. Comparatively, 9.0% of shares of all “Commercial REITs” companies are owned by 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

Armada Hoffler Properties has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Armada Hoffler Properties’ peers have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.

Profitability

This table compares Armada Hoffler Properties and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armada Hoffler Properties 8.04% 7.02% 2.58%
Armada Hoffler Properties Competitors 52.25% 6.78% 3.88%

Valuation & Earnings

This table compares Armada Hoffler Properties and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Armada Hoffler Properties $315.03 million $65.61 million 29.56
Armada Hoffler Properties Competitors $457.04 million $289.32 million 33.23

Armada Hoffler Properties’ peers have higher revenue and earnings than Armada Hoffler Properties. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Armada Hoffler Properties peers beat Armada Hoffler Properties on 8 of the 15 factors compared.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. is a real estate company. The Company is engaged in developing, building, owning and managing institutional-grade office, retail and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. In addition to the ownership of its operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners. It also provides general contracting services to third parties. Its construction and development experience includes mid- and high-rise office buildings, retail strip malls and retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages and mixed-use town centers.

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