Analyzing Equity Lifestyle Properties (NYSE:ELS) and Invitation Home (NYSE:INVH)

Equity Lifestyle Properties (NYSE:ELS) and Invitation Home (NYSE:INVH) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Volatility and Risk

Equity Lifestyle Properties has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Invitation Home has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares Equity Lifestyle Properties and Invitation Home”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Lifestyle Properties	$1.44 billion	8.19	$367.01 million	$1.99	30.54
Invitation Home	$2.62 billion	6.64	$453.92 million	$0.95	29.88

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

Analyst Ratings

This is a breakdown of current ratings for Equity Lifestyle Properties and Invitation Home, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Lifestyle Properties	0	4	7	1	2.75
Invitation Home	0	8	9	0	2.53

Equity Lifestyle Properties presently has a consensus price target of $70.14, suggesting a potential upside of 15.39%. Invitation Home has a consensus price target of $35.47, suggesting a potential upside of 24.96%. Given Invitation Home’s higher probable upside, analysts clearly believe Invitation Home is more favorable than Equity Lifestyle Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equity Lifestyle Properties	24.97%	20.99%	6.71%
Invitation Home	21.70%	6.03%	3.14%

Dividends

Equity Lifestyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.4%. Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 4.1%. Equity Lifestyle Properties pays out 103.5% 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 122.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties has raised its dividend for 21 consecutive years and Invitation Home has raised its dividend for 1 consecutive years.

Institutional & Insider Ownership

97.2% of Equity Lifestyle Properties shares are held by institutional investors. Comparatively, 96.8% of Invitation Home shares are held by institutional investors. 1.4% of Equity Lifestyle Properties shares are held by insiders. Comparatively, 0.3% of Invitation Home shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Equity Lifestyle Properties beats Invitation Home on 12 of the 18 factors compared between the two stocks.

About Equity Lifestyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.

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.