Comparing Armada Hoffler Properties (AHRT) and Its Competitors

Armada Hoffler Properties (NYSE:AHRT) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it contrast to its rivals? We will compare Armada Hoffler Properties to similar companies based on the strength of its earnings, risk, institutional ownership, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Armada Hoffler Properties and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	-18.23%	-0.79%	-0.20%
Armada Hoffler Properties Competitors	-35.49%	-4.50%	0.57%

Institutional and Insider Ownership

66.3% of Armada Hoffler Properties shares are held by institutional investors. Comparatively, 39.1% of shares of all “Diversified REITs” companies are held by institutional investors. 9.3% of Armada Hoffler Properties shares are held by insiders. Comparatively, 11.9% of shares of all “Diversified REITs” companies are held 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 current ratings and target prices for Armada Hoffler Properties and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	1	2	1	1	2.40
Armada Hoffler Properties Competitors	494	2471	1968	23	2.31

Armada Hoffler Properties presently has a consensus target price of $7.50, indicating a potential upside of 16.73%. As a group, “Diversified REITs” companies have a potential upside of 8.50%. Given Armada Hoffler Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Armada Hoffler Properties is more favorable than its rivals.

Valuation & Earnings

This table compares Armada Hoffler Properties and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Armada Hoffler Properties	$285.20 million	$5.60 million	-10.20
Armada Hoffler Properties Competitors	$196.64 million	$18.17 million	6.33

Armada Hoffler Properties has higher revenue, but lower earnings than its rivals. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 8.7%. Armada Hoffler Properties pays out -88.9% of its earnings in the form of a dividend. As a group, “Diversified REITs” companies pay a dividend yield of 6.8% and pay out -1,135.4% of their earnings in the form of a dividend.

Volatility & Risk

Armada Hoffler Properties has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Armada Hoffler Properties’ rivals have a beta of 1.27, meaning that their average stock price is 27% more volatile than the S&P 500.

Summary

Armada Hoffler Properties beats its rivals on 8 of the 15 factors compared.

Armada Hoffler Properties Company Profile

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.