Head-To-Head Analysis: Associated Estates Realty (AEC) and Sun Communities (SUI)

Associated Estates Realty (NYSE: AEC) and Sun Communities (NYSE:SUI) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Associated Estates Realty and Sun Communities, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Associated Estates Realty 0 0 0 0 N/A
Sun Communities 0 2 4 0 2.67

Sun Communities has a consensus price target of $92.00, suggesting a potential upside of 4.75%. Given Sun Communities’ higher probable upside, analysts clearly believe Sun Communities is more favorable than Associated Estates Realty.

Profitability

This table compares Associated Estates Realty and Sun Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Associated Estates Realty 60.04% 18.10% 7.71%
Sun Communities 7.37% 2.76% 1.17%

Insider and Institutional Ownership

93.6% of Sun Communities shares are held by institutional investors. 4.2% of Sun Communities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Sun Communities pays an annual dividend of $2.68 per share and has a dividend yield of 3.1%. Associated Estates Realty does not pay a dividend. Sun Communities pays out 362.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Associated Estates Realty and Sun Communities’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Associated Estates Realty N/A N/A N/A $1.20 23.96
Sun Communities $833.78 million 8.36 $31.32 million $0.74 118.69

Sun Communities has higher revenue and earnings than Associated Estates Realty. Associated Estates Realty is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.

About Associated Estates Realty

Associated Estates Realty Corporation is a self-administered and self-managed equity real estate investment trust (REIT). The Company is engaged primarily in the ownership and operation of multifamily apartment units. It specializes in multifamily ownership, operation, acquisition, development, disposition and property management activities. Its operating portfolio consists of approximately 49 apartment communities containing around 12,734 units in eight states that are owned, either directly or indirectly, through its subsidiaries. It also owns a commercial building in Los Angeles, California containing approximately 78,800 total square feet of office and commercial space. The Company also earns revenue from rental payments from the leasing of apartment units. It owns a taxable REIT subsidiary, which performs construction management services in connection with the development of multifamily properties that it owns, including consolidated and unconsolidated joint ventures.

About Sun Communities

Sun Communities, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is a fully integrated real estate company, which, together with its affiliates and predecessors, has been in the business of acquiring, operating, developing, and expanding manufactured housing (MH) and recreational vehicle (RV). As of December 31, 2016, it owned and operated or had an interest in a portfolio of properties located throughout the United States and Ontario, Canada, including 226 MH communities, 87 RV communities, and 28 properties containing both MH and RV sites. The Company operates through two segments: Real Property Operations and Home Sales and Rentals. The Real Property Operations segment owns, operates, or has an interest in a portfolio, and develops MH communities and RV communities throughout the United States and is in the business of acquiring, operating, and expanding MH and RV communities.

Receive News & Ratings for Associated Estates Realty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Associated Estates Realty and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply