Invitation Home (NYSE:INVH – Get Free Report) and Apartment Investment and Management (NYSE:AIV – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Profitability
This table compares Invitation Home and Apartment Investment and Management’s 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% |
| Apartment Investment and Management | -30.59% | -34.47% | -3.35% |
Risk and Volatility
Invitation Home has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Invitation Home | $2.68 billion | 6.87 | $453.92 million | $0.88 | 34.06 |
| Apartment Investment and Management | $208.68 million | 5.25 | -$102.47 million | ($0.48) | -16.04 |
Invitation Home has higher revenue and earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Invitation Home, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Invitation Home and Apartment Investment and Management, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Invitation Home | 0 | 9 | 8 | 0 | 2.47 |
| Apartment Investment and Management | 0 | 0 | 1 | 0 | 3.00 |
Invitation Home currently has a consensus price target of $37.2647, suggesting a potential upside of 24.32%. Apartment Investment and Management has a consensus price target of $10.00, suggesting a potential upside of 29.87%. Given Apartment Investment and Management’s stronger consensus rating and higher probable upside, analysts clearly believe Apartment Investment and Management is more favorable than Invitation Home.
Institutional & Insider Ownership
96.8% of Invitation Home shares are held by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are held by institutional investors. 0.3% of Invitation Home shares are held by insiders. Comparatively, 3.0% of Apartment Investment and Management shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Invitation Home beats Apartment Investment and Management on 10 of the 14 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 Apartment Investment and Management
Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.
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