Armada Hoffler Properties (NYSE: AHH) and Hannon Armstrong Sustnbl Infrstr Cap (NYSE:HASI) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Armada Hoffler Properties and Hannon Armstrong Sustnbl Infrstr Cap, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armada Hoffler Properties 0 3 4 0 2.57
Hannon Armstrong Sustnbl Infrstr Cap 0 1 7 0 2.88

Armada Hoffler Properties presently has a consensus price target of $14.75, indicating a potential upside of 12.17%. Hannon Armstrong Sustnbl Infrstr Cap has a consensus price target of $26.29, indicating a potential upside of 26.98%. Given Hannon Armstrong Sustnbl Infrstr Cap’s stronger consensus rating and higher possible upside, analysts plainly believe Hannon Armstrong Sustnbl Infrstr Cap is more favorable than Armada Hoffler Properties.

Profitability

This table compares Armada Hoffler Properties and Hannon Armstrong Sustnbl Infrstr Cap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armada Hoffler Properties 8.42% 6.23% 2.50%
Hannon Armstrong Sustnbl Infrstr Cap 32.42% 8.61% 2.60%

Valuation & Earnings

This table compares Armada Hoffler Properties and Hannon Armstrong Sustnbl Infrstr Cap’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Armada Hoffler Properties $302.77 million 1.95 $28.07 million $0.50 26.30
Hannon Armstrong Sustnbl Infrstr Cap $81.20 million 13.53 $14.65 million $0.60 34.50

Armada Hoffler Properties has higher revenue and earnings than Hannon Armstrong Sustnbl Infrstr Cap. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustnbl Infrstr Cap, indicating that it is currently the more affordable of the two stocks.

Dividends

Armada Hoffler Properties pays an annual dividend of $0.76 per share and has a dividend yield of 5.8%. Hannon Armstrong Sustnbl Infrstr Cap pays an annual dividend of $1.32 per share and has a dividend yield of 6.4%. Armada Hoffler Properties pays out 152.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustnbl Infrstr Cap pays out 220.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Armada Hoffler Properties has increased its dividend for 4 consecutive years and Hannon Armstrong Sustnbl Infrstr Cap has increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

81.8% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 71.3% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by institutional investors. 16.6% of Armada Hoffler Properties shares are owned by insiders. Comparatively, 5.4% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Armada Hoffler Properties has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Hannon Armstrong Sustnbl Infrstr Cap has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Summary

Hannon Armstrong Sustnbl Infrstr Cap beats Armada Hoffler Properties on 11 of the 16 factors compared between the two stocks.

Armada Hoffler Properties Company Profile

Armada Hoffler Properties, Inc. is a real estate company. The Company is engaged in developing, building, owning and managing institutional-grade office, retail and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. In addition to the ownership of its operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners. It also provides general contracting services to third parties. Its construction and development experience includes mid- and high-rise office buildings, retail strip malls and retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages and mixed-use town centers.

Hannon Armstrong Sustnbl Infrstr Cap Company Profile

Hannon Armstrong Sustainable Infrastructure Capital, Inc. makes debt and equity investments in sustainable infrastructure, including energy efficiency and renewable energy. The Company focuses on providing preferred or senior level capital to sponsors and obligors for assets that generate long-term, recurring and predictable cash flows. The Company focuses its investment activities primarily on Energy Efficiency Projects, which include projects typically undertaken by energy service companies, which reduce a building’s or facility’s energy usage or cost by installing various building components, including heating, ventilation and air conditioning systems, lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems, and Renewable Energy Projects, which include projects that deploy cleaner energy sources, such as solar and wind to generate power production. It may also invest in other projects, such as water or communications infrastructure.

Receive News & Ratings for Armada Hoffler Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Armada Hoffler Properties and related companies with MarketBeat.com's FREE daily email newsletter.