Head-To-Head Contrast: Invitation Home (NYSE:INVH) versus Apartment Investment and Management (NYSE:AIV)

Invitation Home (NYSE:INVH) and Apartment Investment and Management (NYSE:AIV) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Risk and Volatility

Invitation Home has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares Invitation Home and Apartment Investment and Management’s 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%
Apartment Investment and Management	-30.59%	-34.47%	-3.35%

Insider and Institutional Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by insiders. Comparatively, 4.0% of Apartment Investment and Management shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Invitation Home and Apartment Investment and Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	8	0	2.47
Apartment Investment and Management	0	0	1	0	3.00

Invitation Home presently has a consensus price target of $36.85, indicating a potential upside of 20.41%. Apartment Investment and Management has a consensus price target of $10.00, indicating a potential upside of 31.84%. Given Apartment Investment and Management’s stronger consensus rating and higher probable upside, analysts clearly believe Apartment Investment and Management is more favorable than Invitation Home.

Earnings & Valuation

This table compares Invitation Home and Apartment Investment and Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.16	$453.92 million	$0.88	34.78
Apartment Investment and Management	$208.68 million	5.17	-$102.47 million	($0.48)	-15.80

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 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 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.