Berkshire Hills Bancorp (BHLB) and America First Multifamily Investors, L.P. (ATAX) Head-To-Head Survey

Berkshire Hills Bancorp (NYSE: BHLB) and America First Multifamily Investors, L.P. (NASDAQ:ATAX) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Berkshire Hills Bancorp has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, America First Multifamily Investors, L.P. has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Dividends

Berkshire Hills Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. America First Multifamily Investors, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 8.4%. Berkshire Hills Bancorp pays out 46.2% of its earnings in the form of a dividend. America First Multifamily Investors, L.P. pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Berkshire Hills Bancorp has increased its dividend for 2 consecutive years.

Profitability

This table compares Berkshire Hills Bancorp and America First Multifamily Investors, L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hills Bancorp 15.03% 6.93% 0.85%
America First Multifamily Investors, L.P. 33.34% 6.63% 2.09%

Valuation and Earnings

This table compares Berkshire Hills Bancorp and America First Multifamily Investors, L.P.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Berkshire Hills Bancorp $336.88 million 4.03 $72.74 million $1.82 18.65
America First Multifamily Investors, L.P. $41.50 million 8.64 $19.28 million $0.32 18.59

Berkshire Hills Bancorp has higher revenue and earnings than America First Multifamily Investors, L.P.. America First Multifamily Investors, L.P. is trading at a lower price-to-earnings ratio than Berkshire Hills Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

74.1% of Berkshire Hills Bancorp shares are owned by institutional investors. Comparatively, 6.7% of America First Multifamily Investors, L.P. shares are owned by institutional investors. 1.7% of Berkshire Hills Bancorp shares are owned by insiders. Comparatively, 1.3% of America First Multifamily Investors, L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Berkshire Hills Bancorp and America First Multifamily Investors, L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hills Bancorp 0 2 3 0 2.60
America First Multifamily Investors, L.P. 0 1 0 0 2.00

Berkshire Hills Bancorp currently has a consensus price target of $37.13, indicating a potential upside of 9.35%. America First Multifamily Investors, L.P. has a consensus price target of $6.00, indicating a potential upside of 0.84%. Given Berkshire Hills Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Berkshire Hills Bancorp is more favorable than America First Multifamily Investors, L.P..

Summary

Berkshire Hills Bancorp beats America First Multifamily Investors, L.P. on 12 of the 17 factors compared between the two stocks.

Berkshire Hills Bancorp Company Profile

Berkshire Hills Bancorp, Inc. (Berkshire) is a holding company for Berkshire Bank (the Bank) and Berkshire Insurance Group. Berkshire offers a range of deposit, lending, insurance and wealth management products to retail, commercial, not-for-profit and municipal customers in its market areas. Berkshire product offerings also include retail and commercial electronic banking, commercial cash management and commercial interest rate swaps. The Bank’s loan portfolio consists of commercial loans, which include residential mortgages, commercial real estate, commercial and industrial loans, and consumer loans. The Bank’s securities available for sale include municipal bonds and obligations, mortgage-backed securities, other bonds and obligations, and marketable equity securities. As of December 5, 2016, the Bank had 99 full service branch offices in Massachusetts, New York, Connecticut, Vermont, New Jersey and Pennsylvania.

America First Multifamily Investors, L.P. Company Profile

America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.

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