Equity Lifestyle Properties (NYSE: ELS) and UMH Properties (NYSE:UMH) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
95.8% of Equity Lifestyle Properties shares are held by institutional investors. Comparatively, 53.6% of UMH Properties shares are held by institutional investors. 6.1% of Equity Lifestyle Properties shares are held by insiders. Comparatively, 11.6% of UMH Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Equity Lifestyle Properties and UMH Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Equity Lifestyle Properties||22.52%||21.07%||5.87%|
This is a breakdown of current ratings and recommmendations for Equity Lifestyle Properties and UMH Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Equity Lifestyle Properties||1||4||0||0||1.80|
Equity Lifestyle Properties presently has a consensus price target of $86.00, suggesting a potential downside of 4.24%. UMH Properties has a consensus price target of $18.60, suggesting a potential upside of 20.47%. Given UMH Properties’ stronger consensus rating and higher probable upside, analysts plainly believe UMH Properties is more favorable than Equity Lifestyle Properties.
Earnings and Valuation
This table compares Equity Lifestyle Properties and UMH Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Equity Lifestyle Properties||$870.43 million||9.06||$173.26 million||$2.09||42.97|
|UMH Properties||$99.21 million||5.44||$11.53 million||($0.22)||-70.18|
Equity Lifestyle Properties has higher revenue and earnings than UMH Properties. UMH Properties 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.
Volatility & Risk
Equity Lifestyle Properties has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.2%. UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 4.7%. Equity Lifestyle Properties pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out -327.3% of its earnings in the form of a dividend. Equity Lifestyle Properties has raised its dividend for 6 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Equity Lifestyle Properties beats UMH Properties on 10 of the 17 factors compared between the two stocks.
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.
About UMH Properties
UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of May 31, 2017, the Company owned 107 manufactured home communities consisting of approximately 19,400 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.
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