Altisource Residential Corporation (NYSE: RESI) and Post Properties (NYSE:PPS) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares Altisource Residential Corporation and Post Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Altisource Residential Corporation||$59.21 million||9.76||-$88.76 million||($4.16)||-2.60|
Post Properties has higher revenue, but lower earnings than Altisource Residential Corporation. Altisource Residential Corporation is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
73.5% of Altisource Residential Corporation shares are owned by institutional investors. Comparatively, 94.3% of Post Properties shares are owned by institutional investors. 0.5% of Altisource Residential Corporation shares are owned by company insiders. Comparatively, 2.2% of Post Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Altisource Residential Corporation has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Post Properties has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
This table compares Altisource Residential Corporation and Post Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altisource Residential Corporation||-378.17%||-21.82%||-8.37%|
This is a summary of current ratings for Altisource Residential Corporation and Post Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altisource Residential Corporation||0||4||4||0||2.50|
Altisource Residential Corporation currently has a consensus target price of $15.57, suggesting a potential upside of 43.78%. Given Altisource Residential Corporation’s higher probable upside, research analysts clearly believe Altisource Residential Corporation is more favorable than Post Properties.
Altisource Residential Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 5.5%. Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Altisource Residential Corporation pays out -14.4% of its earnings in the form of a dividend. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altisource Residential Corporation has increased its dividend for 6 consecutive years and Post Properties has increased its dividend for 3 consecutive years. Altisource Residential Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Altisource Residential Corporation beats Post Properties on 7 of the 13 factors compared between the two stocks.
Altisource Residential Corporation Company Profile
Altisource Residential Corporation is a real estate investment trust (REIT). The Company focuses on acquiring, owning and managing single-family rental (SFR) properties throughout the United States. The Company conducts its activities through its subsidiary, Altisource Residential, L.P., and its subsidiaries. The Company also converts a portion of the real estate owned (REO) properties that it acquires through resolution of its mortgage loans into SFR properties. The Company has also entered into property management service agreements with two third-party property managers: Altisource Portfolio Solutions, SA (ASPS) and Main Street Renewal, LLC (MSR), to provide, among other things, leasing and lease management, operations, maintenance, repair and property management services in respect of its SFR portfolios. As of December 31, 2016, the Company had 10,533 properties, consisting of 9,939 properties held for use and 594 held for sale.
Post Properties Company Profile
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
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