Equity Lifestyle Properties (NYSE:ELS – Get Free Report) and Elme Communities (NYSE:ELME – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares Equity Lifestyle Properties and Elme Communities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equity Lifestyle Properties | 24.97% | 20.99% | 6.71% |
| Elme Communities | -54.57% | -13.15% | -7.52% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Equity Lifestyle Properties and Elme Communities, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity Lifestyle Properties | 0 | 3 | 8 | 1 | 2.83 |
| Elme Communities | 1 | 3 | 0 | 0 | 1.75 |
Volatility and Risk
Equity Lifestyle Properties has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Institutional and Insider Ownership
97.2% of Equity Lifestyle Properties shares are held by institutional investors. Comparatively, 87.9% of Elme Communities shares are held by institutional investors. 0.7% of Equity Lifestyle Properties shares are held by company insiders. Comparatively, 1.4% of Elme Communities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Equity Lifestyle Properties and Elme Communities”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equity Lifestyle Properties | $1.53 billion | 7.79 | $367.01 million | $1.99 | 30.84 |
| Elme Communities | $241.93 million | 6.34 | -$13.10 million | ($1.52) | -11.44 |
Equity Lifestyle Properties has higher revenue and earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Equity Lifestyle Properties, indicating that it is currently the more affordable of the two stocks.
Dividends
Equity Lifestyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.4%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Equity Lifestyle Properties pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Elme Communities pays out -47.4% of its earnings in the form of a dividend. Equity Lifestyle Properties has increased its dividend for 21 consecutive years. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Equity Lifestyle Properties beats Elme Communities on 15 of the 18 factors compared between the two stocks.
About Equity Lifestyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
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