Contrasting Invitation Homes (NYSE:INVH) and Tricon Residential (NYSE:TCN)

Invitation Homes (NYSE:INVHGet Rating) and Tricon Residential (NYSE:TCNGet Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

93.9% of Invitation Homes shares are owned by institutional investors. Comparatively, 13.4% of Tricon Residential shares are owned by institutional investors. 0.2% of Invitation Homes shares are owned 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.

Analyst Ratings

This is a breakdown of recent ratings for Invitation Homes and Tricon Residential, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invitation Homes 0 2 14 1 2.94
Tricon Residential 0 2 7 0 2.78

Invitation Homes presently has a consensus target price of $46.37, suggesting a potential upside of 10.85%. Tricon Residential has a consensus target price of $18.28, suggesting a potential upside of 19.38%. Given Tricon Residential’s higher possible upside, analysts plainly believe Tricon Residential is more favorable than Invitation Homes.

Profitability

This table compares Invitation Homes and Tricon Residential’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invitation Homes 13.08% 2.85% 1.46%
Tricon Residential N/A N/A N/A

Dividends

Invitation Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Tricon Residential pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. Invitation Homes pays out 195.6% 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 Homes has increased its dividend for 5 consecutive years. Invitation Homes is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Invitation Homes and Tricon Residential’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Invitation Homes $2.00 billion 12.74 $261.42 million $0.45 92.96
Tricon Residential $441.74 million 9.46 $445.26 million N/A N/A

Tricon Residential has lower revenue, but higher earnings than Invitation Homes.

Summary

Invitation Homes beats Tricon Residential on 12 of the 15 factors compared between the two stocks.

Invitation Homes Company Profile (Get Rating)

Invitation Homes is the nation's premier single-family home leasing 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.

Tricon Residential Company Profile (Get Rating)

Founded in 1988, Tricon is a rental housing company focused on serving the middle-market demographic. Tricon owns and operates approximately 31,000 single-family rental homes and multi-family rental units in 21 markets across the United States and Canada, managed with an integrated technology-enabled operating platform. More information about Tricon is available at www.triconresidential.com.

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