Head-To-Head Analysis: Camden Property Trust (NYSE:CPT) & Equity Lifestyle Properties (NYSE:ELS)

Equity Lifestyle Properties (NYSE:ELS) and Camden Property Trust (NYSE:CPT) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Institutional & Insider Ownership

97.2% of Equity Lifestyle Properties shares are held by institutional investors. Comparatively, 97.2% of Camden Property Trust shares are held by institutional investors. 0.8% of Equity Lifestyle Properties shares are held by company insiders. Comparatively, 1.9% of Camden Property Trust shares are held 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.

Dividends

Equity Lifestyle Properties pays an annual dividend of $2.17 per share and has a dividend yield of 3.5%. Camden Property Trust pays an annual dividend of $4.24 per share and has a dividend yield of 4.3%. Equity Lifestyle Properties pays out 106.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust pays out 39.5% of its earnings in the form of a dividend. Equity Lifestyle Properties has raised its dividend for 21 consecutive years and Camden Property Trust has raised its dividend for 4 consecutive years. Camden Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Equity Lifestyle Properties and Camden Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity Lifestyle Properties	24.97%	21.73%	6.84%
Camden Property Trust	71.94%	26.22%	12.04%

Volatility and Risk

Equity Lifestyle Properties has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Equity Lifestyle Properties and Camden Property Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Lifestyle Properties	2	6	6	1	2.40
Camden Property Trust	1	11	2	0	2.07

Equity Lifestyle Properties presently has a consensus target price of $67.02, indicating a potential upside of 7.99%. Camden Property Trust has a consensus target price of $108.73, indicating a potential upside of 9.62%. Given Camden Property Trust’s higher probable upside, analysts plainly believe Camden Property Trust is more favorable than Equity Lifestyle Properties.

Valuation and Earnings

This table compares Equity Lifestyle Properties and Camden Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Lifestyle Properties	$1.53 billion	7.89	$386.51 million	$2.03	30.57
Camden Property Trust	$1.57 billion	6.31	$384.46 million	$10.73	9.24

Equity Lifestyle Properties has higher earnings, but lower revenue than Camden Property Trust. Camden Property Trust is trading at a lower price-to-earnings ratio than Equity Lifestyle Properties, indicating that it is currently the more affordable of the two stocks.

Summary

Camden Property Trust beats Equity Lifestyle Properties on 11 of the 18 factors compared between the two stocks.

About Equity Lifestyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust that owns and operates manufactured home communities, recreational vehicle (RV) resorts and campgrounds. Its properties serve both long-term residents and vacationers, with offerings that include home sites, RV sites and related accommodations. The company’s communities and resorts are located across the United States and Canada. In addition to managing its properties, Equity LifeStyle Properties offers services such as home rentals and sales, and provides amenities and recreational activities at many locations.

About Camden Property Trust

Camden Property Trust is a real estate investment trust that owns, develops, acquires and manages apartment communities. Its residential properties serve renters in markets across the United States, with a focus on major metropolitan areas. Founded in 1982 and headquartered in Houston, Texas, Camden has grown into a multifamily housing operator. Its services include leasing apartments and managing the day-to-day operations of its communities.