Post Properties (NYSE: PPS) is one of 45 publicly-traded companies in the “Residential REITs” industry, but how does it compare to its competitors? We will compare Post Properties to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

94.3% of Post Properties shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 2.2% of Post Properties shares are owned by insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. 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. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.0% of their earnings in the form of a dividend. Post Properties has increased its dividend for 6 consecutive years. Post Properties lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Post Properties has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500. Comparatively, Post Properties’ competitors have a beta of 0.57, meaning that their average share price is 43% less volatile than the S&P 500.

Valuation and Earnings

This table compares Post Properties and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Post Properties N/A N/A 45.47
Post Properties Competitors $596.57 million $332.31 million 0.94

Post Properties’ competitors have higher revenue and earnings than Post Properties. Post Properties 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.

Profitability

This table compares Post Properties and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Post Properties 17.36% 5.79% 3.07%
Post Properties Competitors 27.45% 5.81% 2.35%

Analyst Ratings

This is a summary of current ratings and price targets for Post Properties and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Post Properties 0 0 0 0 N/A
Post Properties Competitors 179 1207 1239 30 2.42

As a group, “Residential REITs” companies have a potential upside of 7.92%. Given Post Properties’ competitors higher possible upside, analysts plainly believe Post Properties has less favorable growth aspects than its competitors.

Summary

Post Properties competitors beat Post Properties on 8 of the 10 factors compared.

About Post Properties

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.

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