Apartment Investment and Management (NYSE:AIV – Get Free Report) and Elme Communities (NYSE:ELME – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Risk & Volatility
Apartment Investment and Management has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Apartment Investment and Management and Elme Communities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Apartment Investment and Management | 125.34% | -98.07% | -7.13% |
| Elme Communities | -54.57% | -13.15% | -7.52% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Apartment Investment and Management | $208.68 million | 4.07 | -$102.47 million | $1.72 | 3.43 |
| Elme Communities | $241.93 million | 1.11 | -$13.10 million | ($1.52) | -2.01 |
Elme Communities has higher revenue and earnings than Apartment Investment and Management. Elme Communities is trading at a lower price-to-earnings ratio than Apartment Investment and Management, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Apartment Investment and Management and Elme Communities, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Apartment Investment and Management | 1 | 0 | 1 | 0 | 2.00 |
| Elme Communities | 1 | 3 | 0 | 0 | 1.75 |
Apartment Investment and Management presently has a consensus target price of $10.00, suggesting a potential upside of 69.64%. Elme Communities has a consensus target price of $18.50, suggesting a potential upside of 505.17%. Given Elme Communities’ higher probable upside, analysts plainly believe Elme Communities is more favorable than Apartment Investment and Management.
Insider and Institutional Ownership
83.3% of Apartment Investment and Management shares are held by institutional investors. Comparatively, 87.9% of Elme Communities shares are held by institutional investors. 3.0% of Apartment Investment and Management 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.
Summary
Apartment Investment and Management beats Elme Communities on 9 of the 14 factors compared between the two stocks.
About Apartment Investment and Management
Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.
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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