Head to Head Review: Hunt Companies Finance Trust (HCFT) and Mid-America Apartment Communities (MAA)

Hunt Companies Finance Trust (NYSE:HCFT) and Mid-America Apartment Communities (NYSE:MAA) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.

Profitability

This table compares Hunt Companies Finance Trust and Mid-America Apartment Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hunt Companies Finance Trust 2.79% 8.47% 0.61%
Mid-America Apartment Communities 18.20% 4.36% 2.47%

Earnings & Valuation

This table compares Hunt Companies Finance Trust and Mid-America Apartment Communities’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hunt Companies Finance Trust $86.56 million 0.94 $4.70 million $0.48 7.15
Mid-America Apartment Communities $1.53 billion 7.71 $328.37 million $5.94 17.43

Mid-America Apartment Communities has higher revenue and earnings than Hunt Companies Finance Trust. Hunt Companies Finance Trust is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.

Dividends

Hunt Companies Finance Trust pays an annual dividend of $0.72 per share and has a dividend yield of 21.0%. Mid-America Apartment Communities pays an annual dividend of $3.69 per share and has a dividend yield of 3.6%. Hunt Companies Finance Trust pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mid-America Apartment Communities pays out 62.1% of its earnings in the form of a dividend. Mid-America Apartment Communities has raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hunt Companies Finance Trust and Mid-America Apartment Communities, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hunt Companies Finance Trust 0 0 0 0 N/A
Mid-America Apartment Communities 0 8 5 0 2.38

Mid-America Apartment Communities has a consensus target price of $102.59, suggesting a potential downside of 0.94%. Given Mid-America Apartment Communities’ higher probable upside, analysts plainly believe Mid-America Apartment Communities is more favorable than Hunt Companies Finance Trust.

Volatility and Risk

Hunt Companies Finance Trust has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500.

Insider & Institutional Ownership

39.6% of Hunt Companies Finance Trust shares are owned by institutional investors. Comparatively, 92.6% of Mid-America Apartment Communities shares are owned by institutional investors. 0.9% of Hunt Companies Finance Trust shares are owned by company insiders. Comparatively, 1.3% of Mid-America Apartment Communities shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Mid-America Apartment Communities beats Hunt Companies Finance Trust on 13 of the 16 factors compared between the two stocks.

About Hunt Companies Finance Trust

Hunt Companies Finance Trust, Inc., a real estate specialty finance company, focuses on investing in portfolio mortgage-backed securities (MBS), mortgages, and other real estate related assets. It invests in agency and non-agency residential MBS, multi-family MBS, mortgage-servicing rights, and other mortgage-related investments. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Five Oaks Investment Corp. and changed its name to Hunt Companies Finance Trust, Inc. in May 2018. Hunt Companies Finance Trust, Inc. was founded in 2012 and is headquartered in New York, New York.

About Mid-America Apartment Communities

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States. As of September 30, 2018, MAA had ownership interest in 101,441 apartment units, including communities currently in development, across 17 states and the District of Columbia.

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