Analyzing Invitation Home (NYSE:INVH) and UMH Properties (NYSE:UMH)

Invitation Home (NYSE:INVH) and UMH Properties (NYSE:UMH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

96.8% of Invitation Home shares are held by institutional investors. Comparatively, 75.4% of UMH Properties shares are held by institutional investors. 0.3% of Invitation Home shares are held by company insiders. Comparatively, 8.8% of UMH Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Invitation Home and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	20.36%	5.56%	2.88%
UMH Properties	12.18%	5.19%	1.96%

Analyst Ratings

This is a summary of current recommendations for Invitation Home and UMH Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	8	0	2.47
UMH Properties	0	1	2	0	2.67

Invitation Home presently has a consensus target price of $36.85, suggesting a potential upside of 21.73%. UMH Properties has a consensus target price of $20.25, suggesting a potential upside of 33.80%. Given UMH Properties’ stronger consensus rating and higher possible upside, analysts plainly believe UMH Properties is more favorable than Invitation Home.

Risk & Volatility

Invitation Home has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.8%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.9%. Invitation Home pays out 131.8% 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 642.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invitation Home has raised its dividend for 1 consecutive years and UMH Properties has raised its dividend for 4 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Invitation Home and UMH Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.09	$453.92 million	$0.88	34.40
UMH Properties	$240.55 million	5.34	$21.64 million	$0.14	108.11

Invitation Home has higher revenue and earnings than UMH Properties. Invitation Home is trading at a lower price-to-earnings ratio than UMH Properties, indicating that it is currently the more affordable of the two stocks.

Summary

Invitation Home beats UMH Properties on 10 of the 17 factors compared between the two stocks.

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.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate