Financial Contrast: American Homes 4 Rent (AMH) versus Its Peers

American Homes 4 Rent (NYSE:AMH) is one of 57 public companies in the “Residential REITs” industry, but how does it compare to its competitors? We will compare American Homes 4 Rent to similar businesses based on the strength of its earnings, valuation, profitability, risk, analyst recommendations, institutional ownership and dividends.

Risk & Volatility

American Homes 4 Rent has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, American Homes 4 Rent’s competitors have a beta of 0.68, meaning that their average share price is 32% less volatile than the S&P 500.

Profitability

This table compares American Homes 4 Rent and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Homes 4 Rent	24.17%	6.07%	3.48%
American Homes 4 Rent Competitors	11.22%	2.92%	2.58%

Dividends

American Homes 4 Rent pays an annual dividend of $1.32 per share and has a dividend yield of 4.0%. American Homes 4 Rent pays out 108.2% 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, “Residential REITs” companies pay a dividend yield of 4.6% and pay out 227.9% of their earnings in the form of a dividend. American Homes 4 Rent has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares American Homes 4 Rent and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Homes 4 Rent	$1.90 billion	$452.97 million	26.92
American Homes 4 Rent Competitors	$780.39 million	$238.42 million	41.71

American Homes 4 Rent has higher revenue and earnings than its competitors. American Homes 4 Rent is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

91.9% of American Homes 4 Rent shares are owned by institutional investors. Comparatively, 55.6% of shares of all “Residential REITs” companies are owned by institutional investors. 5.7% of American Homes 4 Rent shares are owned by insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for American Homes 4 Rent and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Homes 4 Rent	0	7	10	1	2.67
American Homes 4 Rent Competitors	622	3265	3379	147	2.41

American Homes 4 Rent currently has a consensus target price of $36.53, indicating a potential upside of 11.24%. As a group, “Residential REITs” companies have a potential upside of 11.95%. Given American Homes 4 Rent’s competitors higher possible upside, analysts plainly believe American Homes 4 Rent has less favorable growth aspects than its competitors.

Summary

American Homes 4 Rent beats its competitors on 11 of the 15 factors compared.

American Homes 4 Rent Company Profile

American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.