Apartment Investment and Management (NYSE:AIV – Get Free Report) and Invitation Home (NYSE:INVH – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Profitability
This table compares Apartment Investment and Management and Invitation Home’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Apartment Investment and Management | -30.59% | -34.47% | -3.35% |
| Invitation Home | 20.36% | 5.56% | 2.88% |
Institutional & Insider Ownership
83.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 96.8% of Invitation Home shares are owned by institutional investors. 3.0% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 0.3% of Invitation Home shares are owned by company 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.
Risk and Volatility
Analyst Ratings
This is a breakdown of current recommendations and price targets for Apartment Investment and Management and Invitation Home, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Apartment Investment and Management | 0 | 0 | 1 | 0 | 3.00 |
| Invitation Home | 0 | 9 | 8 | 0 | 2.47 |
Apartment Investment and Management currently has a consensus target price of $10.00, indicating a potential upside of 30.29%. Invitation Home has a consensus target price of $36.85, indicating a potential upside of 21.73%. Given Apartment Investment and Management’s stronger consensus rating and higher possible upside, analysts plainly believe Apartment Investment and Management is more favorable than Invitation Home.
Valuation & Earnings
This table compares Apartment Investment and Management and Invitation Home”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Apartment Investment and Management | $208.68 million | 5.23 | -$102.47 million | ($0.48) | -15.99 |
| Invitation Home | $2.62 billion | 7.09 | $453.92 million | $0.88 | 34.40 |
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.
Summary
Invitation Home beats Apartment Investment and Management on 10 of the 14 factors compared between the two stocks.
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.
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.
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