Apartment Income REIT (NYSE:AIRC) and Paramount Group (NYSE:PGRE) Head-To-Head Comparison

Apartment Income REIT (NYSE:AIRC) and Paramount Group (NYSE:PGRE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Apartment Income REIT and Paramount Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Income REIT	0	8	1	0	2.11
Paramount Group	2	2	1	0	1.80

Apartment Income REIT presently has a consensus target price of $36.59, suggesting a potential downside of 4.62%. Paramount Group has a consensus target price of $4.60, suggesting a potential downside of 1.92%. Given Paramount Group’s higher possible upside, analysts plainly believe Paramount Group is more favorable than Apartment Income REIT.

Valuation and Earnings

This table compares Apartment Income REIT and Paramount Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Income REIT	$820.04 million	6.78	$635.10 million	$4.23	9.07
Paramount Group	$742.79 million	1.37	-$259.74 million	($1.20)	-3.91

Apartment Income REIT has higher revenue and earnings than Paramount Group. Paramount Group is trading at a lower price-to-earnings ratio than Apartment Income REIT, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Apartment Income REIT has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Paramount Group has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

98.1% of Apartment Income REIT shares are owned by institutional investors. Comparatively, 65.6% of Paramount Group shares are owned by institutional investors. 1.0% of Apartment Income REIT shares are owned by insiders. Comparatively, 10.4% of Paramount Group 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.

Profitability

This table compares Apartment Income REIT and Paramount Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Income REIT	77.37%	26.29%	9.95%
Paramount Group	-34.97%	-6.07%	-3.13%

Dividends

Apartment Income REIT pays an annual dividend of $1.80 per share and has a dividend yield of 4.7%. Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 3.0%. Apartment Income REIT pays out 42.6% of its earnings in the form of a dividend. Paramount Group pays out -11.7% 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.

Summary

Apartment Income REIT beats Paramount Group on 11 of the 15 factors compared between the two stocks.

About Apartment Income REIT

Apartment Income REIT Corp (NYSE: AIRC) is a publicly traded, self-administered real estate investment trust (REIT). AIR's portfolio comprises 76 communities totaling 27,010 apartment homes located in 10 states and the District of Columbia. AIR offers a simple, predictable business model with focus on what we call the AIR Edge, the cumulative result of our focus on resident selection, satisfaction, and retention, as well as relentless innovation in delivering best-in-class property management. The AIR Edge is a durable operating advantage in driving organic growth, as well as making possible the opportunity for excess returns for properties new to AIR's platform.

About Paramount Group

Paramount Group, Inc. ("Paramount" or the "Company") is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.