New Senior Investment Group (NYSE: SNR) and American Campus Communities (NYSE:ACC) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Volatility & Risk
New Senior Investment Group has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, American Campus Communities has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.
This table compares New Senior Investment Group and American Campus Communities’ 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%|
|American Campus Communities||7.16%||1.58%||0.89%|
Valuation and Earnings
This table compares New Senior Investment Group and American Campus Communities’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|New Senior Investment Group||$472.44 million||1.25||-$72.24 million||($0.29)||-24.83|
|American Campus Communities||$786.36 million||6.28||$99.06 million||$0.41||88.27|
American Campus Communities has higher revenue and earnings than New Senior Investment Group. New Senior Investment Group is trading at a lower price-to-earnings ratio than American Campus Communities, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
67.4% of New Senior Investment Group shares are held by institutional investors. 1.0% of New Senior Investment Group shares are held by company insiders. Comparatively, 0.7% of American Campus Communities shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
New Senior Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 14.4%. American Campus Communities pays an annual dividend of $1.76 per share and has a dividend yield of 4.9%. New Senior Investment Group pays out -358.6% of its earnings in the form of a dividend. American Campus Communities pays out 429.3% 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 has increased its dividend for 5 consecutive years. New Senior Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and recommmendations for New Senior Investment Group and American Campus Communities, 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|
|American Campus Communities||1||4||9||0||2.57|
New Senior Investment Group presently has a consensus price target of $9.33, indicating a potential upside of 29.63%. American Campus Communities has a consensus price target of $49.50, indicating a potential upside of 36.78%. Given American Campus Communities’ stronger consensus rating and higher probable upside, analysts plainly believe American Campus Communities is more favorable than New Senior Investment Group.
American Campus Communities beats New Senior Investment Group on 11 of the 17 factors compared between the two stocks.
New Senior Investment Group Company Profile
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.
American Campus Communities Company Profile
American Campus Communities, Inc. is a self-managed and self-administered equity real estate investment trust (REIT). The Company’s segments include Wholly-Owned Properties, On-Campus Participating Properties, Development Services, and Property Management Services. It is engaged in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. The Wholly-Owned Properties segment consists of off-campus properties, which are located in close proximity to the school campus. The On-Campus Participating Properties segment includes on-campus properties that are operated under long-term ground/facility leases with three university systems. The Development Services segment consists of development and construction management services that it provides through one of its taxable REIT subsidiaries for third-party owners. The Property Management Services segment includes revenues generated from third-party management contracts.
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