Head-To-Head Analysis: Armada Hoffler Properties (NYSE:AHH) vs. BRT Apartments (NYSE:BRT)

Armada Hoffler Properties (NYSE:AHH) and BRT Apartments (NYSE:BRT) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Volatility and Risk

Armada Hoffler Properties has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Dividends

Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 8.2%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 6.9%. Armada Hoffler Properties pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRT Apartments pays out -208.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings for Armada Hoffler Properties and BRT Apartments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	0	1	2	0	2.67
BRT Apartments	0	1	1	0	2.50

Armada Hoffler Properties presently has a consensus price target of $8.83, indicating a potential upside of 29.33%. BRT Apartments has a consensus price target of $21.00, indicating a potential upside of 44.49%. Given BRT Apartments’ higher probable upside, analysts plainly believe BRT Apartments is more favorable than Armada Hoffler Properties.

Profitability

This table compares Armada Hoffler Properties and BRT Apartments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	3.24%	2.98%	0.81%
BRT Apartments	-9.31%	-4.34%	-1.27%

Insider and Institutional Ownership

66.4% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 29.1% of BRT Apartments shares are owned by institutional investors. 10.2% of Armada Hoffler Properties shares are owned by company insiders. Comparatively, 42.0% of BRT Apartments 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.

Earnings and Valuation

This table compares Armada Hoffler Properties and BRT Apartments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armada Hoffler Properties	$708.47 million	0.98	$35.65 million	$0.08	85.38
BRT Apartments	$95.63 million	2.88	-$9.79 million	($0.48)	-30.28

Armada Hoffler Properties has higher revenue and earnings than BRT Apartments. BRT Apartments is trading at a lower price-to-earnings ratio than Armada Hoffler Properties, indicating that it is currently the more affordable of the two stocks.

Summary

Armada Hoffler Properties beats BRT Apartments on 12 of the 16 factors compared between the two stocks.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.