Head to Head Comparison: UMH Properties (NYSE:UMH) vs. Armada Hoffler Properties (NYSE:AHH)

Armada Hoffler Properties (NYSE:AHH) and UMH Properties (NYSE:UMH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Risk & Volatility

Armada Hoffler Properties has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

66.4% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 75.4% of UMH Properties shares are owned by institutional investors. 10.2% of Armada Hoffler Properties shares are owned by company insiders. Comparatively, 8.8% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Armada Hoffler Properties and UMH Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	2	1	1	1	2.20
UMH Properties	0	3	3	0	2.50

Armada Hoffler Properties currently has a consensus price target of $8.13, suggesting a potential upside of 22.46%. UMH Properties has a consensus price target of $18.20, suggesting a potential upside of 14.57%. Given Armada Hoffler Properties’ higher possible upside, research analysts plainly believe Armada Hoffler Properties is more favorable than UMH Properties.

Valuation and Earnings

This table compares Armada Hoffler Properties and UMH Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armada Hoffler Properties	$708.47 million	0.97	$35.65 million	$0.19	34.92
UMH Properties	$240.55 million	5.63	$21.64 million	$0.08	198.56

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

Dividends

Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 8.4%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.7%. Armada Hoffler Properties pays out 294.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out 1,125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 4 consecutive years. Armada Hoffler Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Armada Hoffler Properties and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	6.77%	4.43%	1.22%
UMH Properties	10.47%	4.47%	1.69%

Summary

UMH Properties beats Armada Hoffler Properties on 10 of the 18 factors compared between the two stocks.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate