Head-To-Head Contrast: Invitation Home (NYSE:INVH) & Sun Communities (NYSE:SUI)

Invitation Home (NYSE:INVH) and Sun Communities (NYSE:SUI) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Sun Communities pays an annual dividend of $4.16 per share and has a dividend yield of 3.3%. Invitation Home pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sun Communities pays out 671.0% 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 increased its dividend for 1 consecutive years and Sun Communities has increased its dividend for 8 consecutive years. Invitation Home is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 99.6% of Sun Communities shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by company insiders. Comparatively, 1.9% of Sun Communities shares are owned by company 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 summary of recent recommendations and price targets for Invitation Home and Sun Communities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	9	0	2.50
Sun Communities	1	7	6	0	2.36

Invitation Home currently has a consensus target price of $37.97, suggesting a potential upside of 17.54%. Sun Communities has a consensus target price of $138.08, suggesting a potential upside of 10.20%. Given Invitation Home’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Invitation Home is more favorable than Sun Communities.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Invitation Home	18.01%	4.82%	2.51%
Sun Communities	2.85%	1.41%	0.62%

Valuation & Earnings

This table compares Invitation Home and Sun Communities”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.56	$453.92 million	$0.77	41.95
Sun Communities	$3.22 billion	4.96	$101.80 million	$0.62	202.09

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

Volatility and Risk

Invitation Home has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Summary

Invitation Home beats Sun Communities on 11 of the 17 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 Sun Communities

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.