Head to Head Comparison: Armada Hoffler Properties (NYSE:AHH) versus Invitation Home (NYSE:INVH)

Armada Hoffler Properties (NYSE:AHH) and Invitation Home (NYSE:INVH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Dividends

Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 7.9%. Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.7%. Armada Hoffler Properties pays out 466.7% 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 pays out 131.8% 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.

Profitability

This table compares Armada Hoffler Properties and Invitation Home’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	4.39%	3.40%	0.95%
Invitation Home	20.36%	5.56%	2.88%

Institutional & Insider Ownership

66.4% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 96.8% of Invitation Home shares are owned by institutional investors. 10.2% of Armada Hoffler Properties shares are owned by insiders. Comparatively, 0.3% of Invitation Home shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Armada Hoffler Properties has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Invitation Home has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Armada Hoffler Properties and Invitation Home”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	1.04	$35.65 million	$0.12	59.33
Invitation Home	$2.62 billion	7.31	$453.92 million	$0.88	35.49

Invitation Home has higher revenue and earnings than Armada Hoffler Properties. Invitation Home 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.

Analyst Recommendations

This is a summary of recent ratings for Armada Hoffler Properties and Invitation Home, 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
Invitation Home	0	9	8	0	2.47

Armada Hoffler Properties presently has a consensus target price of $8.8333, suggesting a potential upside of 24.06%. Invitation Home has a consensus target price of $37.2647, suggesting a potential upside of 19.31%. Given Armada Hoffler Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Armada Hoffler Properties is more favorable than Invitation Home.

Summary

Invitation Home beats Armada Hoffler Properties on 11 of the 17 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 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.