Contrasting Post Properties (PPS) & Apartment Investment and Management (AIV)
Post Properties (NYSE: PPS) and Apartment Investment and Management (NYSE:AIV) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Valuation and Earnings
This table compares Post Properties and Apartment Investment and Management’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apartment Investment and Management||$980.21 million||7.44||$576.30 million||$1.27||36.58|
Apartment Investment and Management has higher revenue and earnings than Post Properties. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Post Properties has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.1%. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out 113.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Post Properties has increased its dividend for 6 consecutive years and Apartment Investment and Management has increased its dividend for 6 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
94.3% of Post Properties shares are held by institutional investors. Comparatively, 98.4% of Apartment Investment and Management shares are held by institutional investors. 2.2% of Post Properties shares are held by insiders. Comparatively, 1.2% of Apartment Investment and Management shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Post Properties and Apartment Investment and Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apartment Investment and Management||20.64%||12.46%||3.29%|
This is a summary of recent ratings and price targets for Post Properties and Apartment Investment and Management, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apartment Investment and Management||2||3||2||0||2.00|
Apartment Investment and Management has a consensus price target of $46.43, suggesting a potential downside of 0.05%. Given Apartment Investment and Management’s higher possible upside, analysts clearly believe Apartment Investment and Management is more favorable than Post Properties.
Apartment Investment and Management beats Post Properties on 10 of the 12 factors compared between the two stocks.
Post Properties Company Profile
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
Apartment Investment and Management Company Profile
Apartment Investment and Management Company (Aimco) is a self-administered and self-managed real estate investment trust (REIT). Aimco, through its subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, holds the ownership interests in the Aimco Operating Partnership. It operates through two segments: conventional real estate and affordable real estate. As of December 31, 2016, its real estate portfolio consisted of 189 apartment communities with 46,311 apartment homes. Aimco Operating Partnership conducts the Company’s business, which is focused on the ownership, management, redevelopment and limited development of apartment communities located in the coastal and job growth markets of the United States. Its Conventional segment consists of apartment communities it classifies as Conventional Same Store and Conventional Non-Same Store. Its affordable portfolio consists primarily of apartment communities that it manages that are owned through low-income housing tax credit partnerships.
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