Invitation Home (INVH) & Its Rivals Critical Analysis

Invitation Home (NYSE:INVH) is one of 30 public companies in the “REIT – EQTY TRUST – RESID” industry, but how does it weigh in compared to its peers? We will compare Invitation Home to similar businesses based on the strength of its risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

96.8% of Invitation Home shares are held by institutional investors. Comparatively, 79.8% of shares of all “REIT – EQTY TRUST – RESID” companies are held by institutional investors. 0.3% of Invitation Home shares are held by company insiders. Comparatively, 5.9% of shares of all “REIT – EQTY TRUST – RESID” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Invitation Home and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	9	0	2.50
Invitation Home Competitors	397	2265	2136	39	2.38

Invitation Home presently has a consensus target price of $37.97, suggesting a potential upside of 17.60%. As a group, “REIT – EQTY TRUST – RESID” companies have a potential upside of 15.24%. Given Invitation Home’s stronger consensus rating and higher probable upside, research analysts clearly believe Invitation Home is more favorable than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Invitation Home	18.01%	4.82%	2.51%
Invitation Home Competitors	4.78%	0.70%	1.01%

Risk & Volatility

Invitation Home has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Invitation Home’s peers have a beta of 0.64, suggesting that their average stock price is 36% less volatile than the S&P 500.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Invitation Home pays out 150.6% 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, “REIT – EQTY TRUST – RESID” companies pay a dividend yield of 3.9% and pay out 202.9% of their earnings in the form of a dividend. Invitation Home has increased its dividend for 1 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Home	$2.62 billion	$453.92 million	41.94
Invitation Home Competitors	$951.59 million	$183.40 million	22.25

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

Summary

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

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.