Head-To-Head Contrast: Camden Property Trust (CPT) & American Residential Properties (ARPI)
Camden Property Trust (NYSE: CPT) and American Residential Properties (NYSE:ARPI) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.
Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.5%. American Residential Properties pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Camden Property Trust pays out 182.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Residential Properties pays out -28.6% of its earnings in the form of a dividend. Camden Property Trust has raised its dividend for 7 consecutive years. Camden Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Camden Property Trust and American Residential Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Camden Property Trust||$876.45 million||8.96||$819.82 million||$1.64||51.69|
|American Residential Properties||N/A||N/A||N/A||($1.40)||-11.35|
Camden Property Trust has higher revenue and earnings than American Residential Properties. American Residential Properties is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Camden Property Trust and American Residential Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camden Property Trust||0||5||9||0||2.64|
|American Residential Properties||0||0||0||0||N/A|
Camden Property Trust currently has a consensus target price of $94.21, indicating a potential upside of 11.14%. Given Camden Property Trust’s higher possible upside, analysts clearly believe Camden Property Trust is more favorable than American Residential Properties.
Institutional & Insider Ownership
97.0% of Camden Property Trust shares are held by institutional investors. 4.7% of Camden Property Trust shares are held 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.
This table compares Camden Property Trust and American Residential Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camden Property Trust||16.81%||4.71%||2.50%|
|American Residential Properties||-38.70%||-9.17%||-3.64%|
Camden Property Trust beats American Residential Properties on 12 of the 13 factors compared between the two stocks.
About Camden Property Trust
Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.
About American Residential Properties
American Residential Properties, Inc. is an internally managed real estate investment company, which is organized as a real estate investment trust. The Company acquires, owns, renovates, and manages single-family homes as rental properties. American Residential Properties OP, L.P. acts as its operating partnership. American Residential Leasing Company, LLC is a wholly owned subsidiary of its operating partnership. The Company owns 8,893 properties in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee and Texas that were 81% leased, and it managed an additional 437 properties for ARP Phoenix Fund I, LP in Arizona and Nevada. In addition to its primary business, the Company has a private mortgage financing business.
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