Colony Capital (CLNY) & Apartment Investment and Management (AIV) Critical Contrast
Colony Capital (NYSE: CLNY) and Apartment Investment and Management (NYSE:AIV) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
This is a breakdown of recent ratings for Colony Capital 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||4||2||0||2.00|
Colony Capital currently has a consensus price target of $27.00, indicating a potential upside of 25.46%. Apartment Investment and Management has a consensus price target of $46.38, indicating a potential upside of 3.63%. Given Colony Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Colony Capital is more favorable than Apartment Investment and Management.
Valuation and Earnings
This table compares Colony Capital and Apartment Investment and Management’s top-line 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||7.17||$576.30 million||$1.27||35.24|
Apartment Investment and Management has higher revenue and earnings than Colony Capital. Colony Capital 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.
Insider & Institutional Ownership
94.1% of Colony Capital shares are owned by institutional investors. Comparatively, 98.3% of Apartment Investment and Management shares are owned by institutional investors. 17.7% of Colony Capital shares are owned by insiders. Comparatively, 1.2% of Apartment Investment and Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Colony Capital pays an annual dividend of $1.60 per share and has a dividend yield of 7.4%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. Colony Capital pays out 179.8% 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. Colony Capital has raised its dividend for 6 consecutive years and Apartment Investment and Management has raised its dividend for 7 consecutive years.
This table compares Colony Capital 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%|
Volatility and Risk
Colony Capital has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.
Colony Capital Company Profile
Colony Capital, Inc., formerly Colony Financial, Inc., is a global real estate and investment management company. The Company operates through five segments: Real Estate Equity, including Light industrial real estate assets and operating platform; Single-family residential rentals through an investment in Colony Starwood Homes and Other real estate equity investments; Real Estate Debt, which includes loan originations and acquisitions, and Investment Management, which includes investment management of the Company-sponsored funds and other investment vehicles. Through its global investment management business, it has over $18.8 billion of assets under management. Its business objective is to provide risk-adjusted returns to its investors through a diversified portfolio of direct and indirect real estate-related equity and real estate debt investments, and fee bearing management contracts on investment funds that it manages.
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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