Analyzing Invitation Home (NYSE:INVH) & Elme Communities (NYSE:ELME)

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

Dividends

Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Invitation Home pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. Elme Communities pays out -47.4% of its earnings in the form of a dividend. Invitation Home pays out 126.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invitation Home has raised its dividend for 1 consecutive years. Invitation Home is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Elme Communities and Invitation Home’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elme Communities	-54.57%	-13.15%	-7.52%
Invitation Home	21.70%	6.03%	3.14%

Analyst Ratings

This is a summary of current ratings and price targets for Elme Communities and Invitation Home, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elme Communities	1	3	0	0	1.75
Invitation Home	0	9	8	0	2.47

Elme Communities presently has a consensus target price of $18.50, indicating a potential upside of 5.93%. Invitation Home has a consensus target price of $34.59, indicating a potential upside of 24.72%. Given Invitation Home’s stronger consensus rating and higher probable upside, analysts clearly believe Invitation Home is more favorable than Elme Communities.

Valuation & Earnings

This table compares Elme Communities and Invitation Home”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elme Communities	$241.93 million	6.36	-$13.10 million	($1.52)	-11.49
Invitation Home	$2.62 billion	6.49	$453.92 million	$0.95	29.20

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

Institutional & Insider Ownership

87.9% of Elme Communities shares are held by institutional investors. Comparatively, 96.8% of Invitation Home shares are held by institutional investors. 1.4% of Elme Communities shares are held by insiders. Comparatively, 0.3% of Invitation Home shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Elme Communities has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Invitation Home has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Invitation Home beats Elme Communities on 15 of the 17 factors compared between the two stocks.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.

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.