Financial Survey: Invitation Home (NYSE:INVH) versus UMH Properties (NYSE:UMH)

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

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 4.0%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 6.1%. 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. UMH Properties pays out 642.9% 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 raised its dividend for 1 consecutive years and UMH Properties has raised its dividend for 4 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings for Invitation Home and UMH Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	7	8	0	2.53
UMH Properties	0	1	2	0	2.67

Invitation Home currently has a consensus price target of $36.43, suggesting a potential upside of 24.86%. UMH Properties has a consensus price target of $20.25, suggesting a potential upside of 37.76%. Given UMH Properties’ stronger consensus rating and higher probable upside, analysts plainly believe UMH Properties is more favorable than Invitation Home.

Valuation & Earnings

This table compares Invitation Home and UMH Properties”s 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	6.83	$453.92 million	$0.88	33.16
UMH Properties	$240.55 million	5.19	$21.64 million	$0.14	105.00

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

Insider and Institutional Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 75.4% of UMH Properties shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by insiders. Comparatively, 8.8% of UMH Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Invitation Home has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Invitation Home	20.36%	5.56%	2.88%
UMH Properties	12.18%	5.19%	1.96%

Summary

Invitation Home beats UMH Properties on 10 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 UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate