Head-To-Head Survey: American Residential Properties (ARPI) vs. UMH Properties (UMH)

American Residential Properties (NYSE: ARPI) and UMH Properties (NYSE:UMH) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Dividends

American Residential Properties pays an annual dividend of $0.40 per share. UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 5.8%. American Residential Properties pays out -28.6% of its earnings in the form of a dividend. UMH Properties pays out -327.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UMH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares American Residential Properties and UMH Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Residential Properties N/A N/A N/A ($1.40) N/A
UMH Properties $99.21 million 4.40 $11.53 million ($0.22) -56.77

UMH Properties has higher revenue and earnings than American Residential Properties. UMH Properties is trading at a lower price-to-earnings ratio than American Residential Properties, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.1% of UMH Properties shares are owned by institutional investors. 11.6% of UMH Properties shares are owned 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.

Profitability

This table compares American Residential Properties and UMH Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Residential Properties -38.70% -9.17% -3.64%
UMH Properties 1.05% 0.74% 0.16%

Analyst Ratings

This is a breakdown of current ratings for American Residential Properties and UMH Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Residential Properties 0 0 0 0 N/A
UMH Properties 0 0 6 0 3.00

UMH Properties has a consensus price target of $18.30, indicating a potential upside of 46.52%.

Summary

UMH Properties beats American Residential Properties on 10 of the 11 factors compared between the two stocks.

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.

About UMH Properties

UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of December 22, 2017, the Company owned 112 manufactured home communities consisting of approximately 20,000 developed homesites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.

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