Silver Bay Realty Trust (NYSE: SBY) and Sun Communities (NYSE:SUI) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
73.6% of Silver Bay Realty Trust shares are owned by institutional investors. Comparatively, 93.1% of Sun Communities shares are owned by institutional investors. 7.3% of Silver Bay Realty Trust shares are owned by company insiders. Comparatively, 4.2% of Sun Communities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Silver Bay Realty Trust and Sun Communities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silver Bay Realty Trust||-5.71%||-1.42%||-0.61%|
Earnings and Valuation
This table compares Silver Bay Realty Trust and Sun Communities’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Silver Bay Realty Trust||N/A||N/A||N/A||($0.07)||-307.00|
|Sun Communities||$833.78 million||8.31||$31.32 million||$0.74||118.00|
Sun Communities has higher revenue and earnings than Silver Bay Realty Trust. Silver Bay Realty Trust is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Silver Bay Realty Trust and Sun Communities, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silver Bay Realty Trust||0||3||0||0||2.00|
Silver Bay Realty Trust currently has a consensus target price of $20.25, indicating a potential downside of 5.77%. Sun Communities has a consensus target price of $92.00, indicating a potential upside of 5.36%. Given Sun Communities’ stronger consensus rating and higher probable upside, analysts clearly believe Sun Communities is more favorable than Silver Bay Realty Trust.
Silver Bay Realty Trust pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Sun Communities pays an annual dividend of $2.68 per share and has a dividend yield of 3.1%. Silver Bay Realty Trust pays out -742.9% of its earnings in the form of 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. Sun Communities has raised its dividend for 4 consecutive years. Sun Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Sun Communities beats Silver Bay Realty Trust on 12 of the 14 factors compared between the two stocks.
About Silver Bay Realty Trust
Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.
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.
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