Analyzing Camden Property Trust (CPT) and Silver Bay Realty Trust (SBY)

Camden Property Trust (NYSE: CPT) and Silver Bay Realty Trust (NYSE:SBY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Dividends

Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.7%. Silver Bay Realty Trust pays an annual dividend of $0.52 per share. Camden Property Trust pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust pays out -742.9% of its earnings in the form of a dividend. Camden Property Trust has increased its dividend for 7 consecutive years and Silver Bay Realty Trust has increased its dividend for 4 consecutive years. Camden Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Camden Property Trust and Silver Bay Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Camden Property Trust $900.90 million 8.75 $196.42 million $2.10 38.66
Silver Bay Realty Trust N/A N/A N/A ($0.07) N/A

Camden Property Trust has higher revenue and earnings than Silver Bay Realty Trust. Silver Bay Realty Trust is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

93.0% of Camden Property Trust shares are owned by institutional investors. Comparatively, 73.6% of Silver Bay Realty Trust shares are owned by institutional investors. 4.7% of Camden Property Trust shares are owned by insiders. Comparatively, 7.3% of Silver Bay Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Camden Property Trust and Silver Bay Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Camden Property Trust 0 5 9 0 2.64
Silver Bay Realty Trust 0 3 0 0 2.00

Camden Property Trust currently has a consensus price target of $91.86, indicating a potential upside of 13.14%. Silver Bay Realty Trust has a consensus price target of $20.25, indicating a potential upside of Infinity. Given Silver Bay Realty Trust’s higher probable upside, analysts clearly believe Silver Bay Realty Trust is more favorable than Camden Property Trust.

Profitability

This table compares Camden Property Trust and Silver Bay Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Camden Property Trust 21.80% 6.01% 3.26%
Silver Bay Realty Trust -5.71% -1.42% -0.61%

Summary

Camden Property Trust beats Silver Bay Realty Trust on 11 of the 14 factors compared between the two stocks.

Camden Property Trust Company Profile

Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.

Silver Bay Realty Trust Company Profile

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.

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