Invitation Homes (INVH) and Its Competitors Head to Head Review

Invitation Homes (NYSE:INVH) is one of 57 public companies in the “Residential REITs” industry, but how does it contrast to its competitors? We will compare Invitation Homes to related companies based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Invitation Homes and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Homes	1	9	11	0	2.48
Invitation Homes Competitors	619	3261	3375	147	2.41

Invitation Homes presently has a consensus price target of $32.00, indicating a potential upside of 15.99%. As a group, “Residential REITs” companies have a potential upside of 10.81%. Given Invitation Homes’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Invitation Homes is more favorable than its competitors.

Dividends

Invitation Homes pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. Invitation Homes pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 4.6% and pay out 248.5% of their earnings in the form of a dividend. Invitation Homes has increased its dividend for 1 consecutive years.

Profitability

This table compares Invitation Homes and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Homes	23.54%	7.62%	3.75%
Invitation Homes Competitors	9.75%	2.37%	2.33%

Insider & Institutional Ownership

96.8% of Invitation Homes shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are owned by institutional investors. 0.3% of Invitation Homes shares are owned by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Invitation Homes has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Invitation Homes’ competitors have a beta of 0.68, suggesting that their average stock price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Invitation Homes and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Homes	$2.90 billion	$587.92 million	24.20
Invitation Homes Competitors	$780.03 million	$238.42 million	37.33

Invitation Homes has higher revenue and earnings than its competitors. Invitation Homes is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Invitation Homes beats its competitors on 11 of the 15 factors compared.

Invitation Homes Company Profile

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.