Sun Communities (NYSE: SUI) is one of 44 public companies in the “Residential REITs” industry, but how does it compare to its rivals? We will compare Sun Communities to similar businesses based on the strength of its analyst recommendations, profitability, risk, institutional ownership, earnings, dividends and valuation.

Risk and Volatility

Sun Communities has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Sun Communities’ rivals have a beta of 0.57, indicating that their average stock price is 43% less volatile than the S&P 500.

Dividends

Sun Communities pays an annual dividend of $2.68 per share and has a dividend yield of 3.1%. Sun Communities pays out 382.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.1% of their earnings in the form of a dividend. Sun Communities lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Sun Communities and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sun Communities $936.86 million $443.91 million 125.49
Sun Communities Competitors $702.65 million $394.70 million 0.68

Sun Communities has higher revenue and earnings than its rivals. Sun Communities is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Sun Communities and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sun Communities 6.82% 2.59% 1.07%
Sun Communities Competitors 18.59% 5.04% 1.96%

Insider and Institutional Ownership

94.3% of Sun Communities shares are held by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are held by institutional investors. 4.2% of Sun Communities shares are held by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sun Communities and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Communities 0 2 4 0 2.67
Sun Communities Competitors 170 1109 1157 30 2.42

Sun Communities currently has a consensus target price of $89.00, suggesting a potential upside of 1.32%. As a group, “Residential REITs” companies have a potential upside of 8.17%. Given Sun Communities’ rivals higher possible upside, analysts plainly believe Sun Communities has less favorable growth aspects than its rivals.

Summary

Sun Communities rivals beat Sun Communities on 9 of the 15 factors compared.

Sun Communities Company Profile

Sun Communities, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is a fully integrated real estate company, which, together with its affiliates and predecessors, has been in the business of acquiring, operating, developing, and expanding manufactured housing (MH) and recreational vehicle (RV). As of December 31, 2016, it owned and operated or had an interest in a portfolio of properties located throughout the United States and Ontario, Canada, including 226 MH communities, 87 RV communities, and 28 properties containing both MH and RV sites. The Company operates through two segments: Real Property Operations and Home Sales and Rentals. The Real Property Operations segment owns, operates, or has an interest in a portfolio, and develops MH communities and RV communities throughout the United States and is in the business of acquiring, operating, and expanding MH and RV communities.

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