Colony Starwood Homes (NYSE: SFR) and Home Properties (NYSE:HME) are both mid-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares Colony Starwood Homes and Home Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Colony Starwood Homes -7.41% -1.07% -0.47%
Home Properties 18.18% 6.60% 2.87%

Valuation & Earnings

This table compares Colony Starwood Homes and Home Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Colony Starwood Homes $575.68 million 8.28 -$81.26 million ($0.28) -132.61
Home Properties N/A N/A N/A $2.32 32.43

Home Properties has lower revenue, but higher earnings than Colony Starwood Homes. Colony Starwood Homes is trading at a lower price-to-earnings ratio than Home Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Colony Starwood Homes and Home Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colony Starwood Homes 0 4 6 0 2.60
Home Properties 0 0 0 0 N/A

Colony Starwood Homes presently has a consensus price target of $37.50, suggesting a potential upside of 1.00%. Given Colony Starwood Homes’ higher possible upside, equities research analysts clearly believe Colony Starwood Homes is more favorable than Home Properties.

Dividends

Colony Starwood Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Home Properties does not pay a dividend. Colony Starwood Homes pays out -314.3% of its earnings in the form of a dividend. Colony Starwood Homes has increased its dividend for 6 consecutive years.

Summary

Colony Starwood Homes beats Home Properties on 6 of the 10 factors compared between the two stocks.

Colony Starwood Homes Company Profile

Starwood Waypoint Homes, formerly Colony Starwood Homes, is an internally managed real estate investment trust (REIT). The Company was formed primarily to acquire, renovate, lease and manage residential assets in select markets across the United States. It is focused on acquiring single-family rental (SFR) homes through a variety of channels, renovating these homes to the extent necessary and leasing them to qualified residents. The Company operates through two segments, which are represented by its portfolio of SFR homes and its portfolio of NPLs owned in the joint venture with Prime Asset Fund VI, LLC (Prime). The Company identifies and pursues individual home acquisition opportunities through various sources, including multiple listing services (MLS) listings, foreclosure auctions and short sales. As of December 31, 2016, its SFR portfolio consisted of 31,684 owned homes, including 31,065 rental homes and 619 homes that it does not intend to hold for the long term.

Home Properties Company Profile

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.

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