Mid-America Apartment Communities (NYSE:MAA – Get Free Report) and Veris Residential (NYSE:VRE – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
93.6% of Mid-America Apartment Communities shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 1.2% of Mid-America Apartment Communities shares are owned by company insiders. Comparatively, 16.4% of Veris Residential shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Mid-America Apartment Communities and Veris Residential”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mid-America Apartment Communities | $2.19 billion | 7.59 | $527.54 million | $4.86 | 29.25 |
| Veris Residential | $271.07 million | 5.48 | -$23.12 million | ($0.23) | -69.11 |
Mid-America Apartment Communities has higher revenue and earnings than Veris Residential. Veris Residential is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Mid-America Apartment Communities and Veris Residential’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mid-America Apartment Communities | 25.98% | 9.35% | 4.84% |
| Veris Residential | -7.84% | -1.89% | -0.77% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Mid-America Apartment Communities and Veris Residential, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mid-America Apartment Communities | 1 | 8 | 8 | 0 | 2.41 |
| Veris Residential | 0 | 3 | 2 | 0 | 2.40 |
Mid-America Apartment Communities currently has a consensus target price of $162.41, indicating a potential upside of 14.27%. Veris Residential has a consensus target price of $19.20, indicating a potential upside of 20.79%. Given Veris Residential’s higher probable upside, analysts plainly believe Veris Residential is more favorable than Mid-America Apartment Communities.
Dividends
Mid-America Apartment Communities pays an annual dividend of $6.06 per share and has a dividend yield of 4.3%. Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.0%. Mid-America Apartment Communities pays out 124.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential pays out -139.1% of its earnings in the form of a dividend. Mid-America Apartment Communities has raised its dividend for 16 consecutive years and Veris Residential has raised its dividend for 1 consecutive years. Mid-America Apartment Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
Mid-America Apartment Communities has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Summary
Mid-America Apartment Communities beats Veris Residential on 13 of the 17 factors compared between the two stocks.
About Mid-America Apartment Communities
Mid-America Apartment Communities, Inc. is a real estate investment trust, which engages in the operation, acquisition, and development of apartment communities. It operates through the Same Store and Non-Same Store segments. The Same Store Communities segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. The Non-Same Store segment includes recent acquisitions, communities in development or lease-up. The company was founded in 1994 and is headquartered in Germantown, TN.
About Veris Residential
Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.
Receive News & Ratings for Mid-America Apartment Communities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mid-America Apartment Communities and related companies with MarketBeat.com's FREE daily email newsletter.
