Clipper Realty (NYSE:CLPR) & Invitation Home (NYSE:INVH) Critical Contrast

Invitation Home (NYSE:INVH) and Clipper Realty (NYSE:CLPR) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Dividends

Invitation Home pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.1%. Invitation Home pays out 110.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty pays out -40.9% of its earnings in the form of a dividend. Invitation Home has increased its dividend for 1 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Invitation Home has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

96.8% of Invitation Home shares are held by institutional investors. Comparatively, 37.6% of Clipper Realty shares are held by institutional investors. 0.3% of Invitation Home shares are held by company insiders. Comparatively, 54.6% of Clipper Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Invitation Home and Clipper Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	23.13%	7.22%	3.63%
Clipper Realty	-8.36%	N/A	-1.03%

Analyst Recommendations

This is a breakdown of recent recommendations for Invitation Home and Clipper Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	1	10	10	0	2.43
Clipper Realty	0	1	0	0	2.00

Invitation Home currently has a consensus price target of $32.53, suggesting a potential upside of 7.61%. Given Invitation Home’s stronger consensus rating and higher possible upside, equities analysts clearly believe Invitation Home is more favorable than Clipper Realty.

Valuation & Earnings

This table compares Invitation Home and Clipper Realty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.73 billion	6.54	$587.92 million	$1.09	27.73
Clipper Realty	$153.20 million	0.36	-$19.90 million	($0.93)	-3.68

Invitation Home has higher revenue and earnings than Clipper Realty. Clipper Realty is trading at a lower price-to-earnings ratio than Invitation Home, indicating that it is currently the more affordable of the two stocks.

Summary

Invitation Home beats Clipper Realty on 13 of the 17 factors compared between the two stocks.

About Invitation Home

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.