Post Properties (NYSE: PPS) and New Senior Investment Group (NYSE:SNR) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Institutional and Insider Ownership
94.3% of Post Properties shares are owned by institutional investors. Comparatively, 67.3% of New Senior Investment Group shares are owned by institutional investors. 2.2% of Post Properties shares are owned by company insiders. Comparatively, 1.0% of New Senior Investment Group shares are owned by company 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.
Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. New Senior Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 14.0%. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Senior Investment Group pays out -358.6% of its earnings in the form of a dividend. Post Properties has raised its dividend for 7 consecutive years. New Senior Investment Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Post Properties has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, New Senior Investment Group has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
This table compares Post Properties and New Senior Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|New Senior Investment Group||-5.25%||-4.49%||-0.87%|
Earnings and Valuation
This table compares Post Properties and New Senior Investment Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Senior Investment Group||$472.44 million||1.29||-$72.24 million||($0.29)||-25.62|
Post Properties has higher earnings, but lower revenue than New Senior Investment Group. New Senior Investment Group is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Post Properties and New Senior Investment Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|New Senior Investment Group||1||2||1||0||2.00|
New Senior Investment Group has a consensus target price of $9.33, suggesting a potential upside of 25.62%. Given New Senior Investment Group’s higher possible upside, analysts clearly believe New Senior Investment Group is more favorable than Post Properties.
Post Properties beats New Senior Investment Group on 8 of the 14 factors compared between the two stocks.
About Post Properties
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
About New Senior Investment Group
New Senior Investment Group Inc. is a real estate investment trust with a diversified portfolio of primarily private pay senior housing properties located across the United States. The Company operates through two segments: Managed Properties and Triple Net Lease Properties. As of December 31, 2016, the Company owned a diversified portfolio of 152 primarily private pay senior housing properties located across 37 states. Under its Managed Properties segment, the Company invests in senior housing properties throughout the United States and engages property managers to manage those senior housing properties. As of December 31, 2016, the Company owned 94 properties under property management agreements with the property managers. Under its Triple Net Lease Properties segment, the Company invests in senior housing and healthcare properties throughout the United States, and leases those properties to healthcare operating companies under triple net leases.
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