Apartment Investment and Management (NYSE: AIV) is one of 44 public companies in the “Residential REITs” industry, but how does it compare to its competitors? We will compare Apartment Investment and Management to related businesses based on the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

98.2% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 77.7% of shares of all “Residential REITs” companies are owned by institutional investors. 1.2% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 7.0% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. 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. 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. Apartment Investment and Management has raised its dividend for 6 consecutive years.

Volatility & Risk

Apartment Investment and Management has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Apartment Investment and Management’s competitors have a beta of 0.57, meaning that their average share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Apartment Investment and Management and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apartment Investment and Management 2 4 2 0 2.00
Apartment Investment and Management Competitors 172 1118 1162 30 2.42

Apartment Investment and Management currently has a consensus target price of $46.38, suggesting a potential upside of 4.80%. As a group, “Residential REITs” companies have a potential upside of 7.02%. Given Apartment Investment and Management’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Apartment Investment and Management has less favorable growth aspects than its competitors.

Profitability

This table compares Apartment Investment and Management and its competitors’ 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%
Apartment Investment and Management Competitors 18.54% 5.04% 1.96%

Earnings and Valuation

This table compares Apartment Investment and Management and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Apartment Investment and Management $980.21 million $576.30 million 34.84
Apartment Investment and Management Competitors $635.77 million $353.96 million 0.74

Apartment Investment and Management has higher revenue and earnings than its competitors. Apartment Investment and Management is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Apartment Investment and Management beats its competitors on 8 of the 15 factors compared.

About Apartment Investment and Management

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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