Equity Residential (NYSE: EQR) and Equity Lifestyle Properties (NYSE:ELS) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
This is a breakdown of current recommendations for Equity Residential and Equity Lifestyle Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Equity Lifestyle Properties||0||5||0||0||2.00|
This table compares Equity Residential and Equity Lifestyle Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Equity Lifestyle Properties||22.41%||20.84%||5.98%|
Equity Residential pays an annual dividend of $2.02 per share and has a dividend yield of 3.4%. Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.3%. Equity Residential pays out 123.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties has raised its dividend for 7 consecutive years.
Volatility & Risk
Equity Residential has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.
Insider and Institutional Ownership
94.3% of Equity Residential shares are held by institutional investors. Comparatively, 97.8% of Equity Lifestyle Properties shares are held by institutional investors. 3.8% of Equity Residential shares are held by insiders. Comparatively, 6.1% of Equity Lifestyle Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Equity Residential and Equity Lifestyle Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Equity Residential||$2.47 billion||8.84||$603.45 million||$1.63||36.42|
|Equity Lifestyle Properties||$925.31 million||8.21||$197.58 million||$2.17||39.44|
Equity Residential has higher revenue and earnings than Equity Lifestyle Properties. Equity Residential is trading at a lower price-to-earnings ratio than Equity Lifestyle Properties, indicating that it is currently the more affordable of the two stocks.
Equity Residential beats Equity Lifestyle Properties on 9 of the 17 factors compared between the two stocks.
About Equity Residential
Equity Residential is a real estate investment trust. The Company’s primary business is the acquisition, development and management of multifamily residential properties. Its segments include Boston, New York, Washington D.C., Southern California, San Francisco, Seattle and Other Markets. Southern California includes Los Angeles, San Diego and Orange County. Other Markets includes Phoenix. It is engaged in leasing of apartment units to residents. It focuses on rental apartment properties in urban and high-density suburban coastal gateway markets. As of December 31, 2016, the Company owned 302 properties located in 10 states and the District of Columbia consisting of 77,458 apartment units. The Company’s projects include The Alton, 455 Eye Street, 855 Brannan, Cascade, One Henry Adams, 340 Fremont and Vista 99. ERP Operating Limited Partnership (ERPOP) conducts the multifamily residential property business of Equity Residential.
About Equity Lifestyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust (REIT). The Company is an owner and operator of lifestyle-oriented properties (properties) consisting primarily of manufactured home (MH) communities and recreational vehicle (RV) resorts and campgrounds. The Company operates through two segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the properties. It leases individual developed areas (sites) with access to utilities for placement of factory built homes, cottages, cabins or RVs. As of December 31, 2016, the Company’s property portfolio included 391 properties consisted of 146,610 residential sites. Its properties are designed for home options of various sizes and designs that are produced off-site by third-party manufacturers, installed and set on designated sites within the properties.
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