Critical Contrast: Invitation Homes (INVH) vs. Its Rivals

Invitation Homes (NYSE:INVH) is one of 57 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its peers? We will compare Invitation Homes to similar companies based on the strength of its risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Profitability

This table compares Invitation Homes and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Homes	23.54%	7.62%	3.75%
Invitation Homes Competitors	8.72%	2.05%	2.18%

Risk and Volatility

Invitation Homes has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Invitation Homes’ peers have a beta of 0.69, suggesting that their average share price is 31% less volatile than the S&P 500.

Insider & Institutional Ownership

96.8% of Invitation Homes shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are owned by institutional investors. 0.3% of Invitation Homes shares are owned by insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Invitation Homes and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Homes	$2.73 billion	$587.92 million	23.31
Invitation Homes Competitors	$774.98 million	$238.42 million	37.46

Invitation Homes has higher revenue and earnings than its peers. Invitation Homes is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for Invitation Homes and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Homes	1	9	11	0	2.48
Invitation Homes Competitors	618	3257	3373	147	2.41

Invitation Homes currently has a consensus target price of $32.00, suggesting a potential upside of 20.40%. As a group, “Residential REITs” companies have a potential upside of 13.85%. Given Invitation Homes’ stronger consensus rating and higher possible upside, analysts plainly believe Invitation Homes is more favorable than its peers.

Dividends

Invitation Homes pays an annual dividend of $1.20 per share and has a dividend yield of 4.5%. Invitation Homes pays out 105.3% 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 4.8% and pay out 225.1% of their earnings in the form of a dividend. Invitation Homes has increased its dividend for 1 consecutive years.

Summary

Invitation Homes beats its peers on 11 of the 15 factors compared.

Invitation Homes Company Profile

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.