Head-To-Head Survey: Corporate Office Properties Trust (NYSE:OFC) & American Homes 4 Rent (NYSE:AMH)

American Homes 4 Rent (NYSE:AMH) and Corporate Office Properties Trust (NYSE:OFC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Dividends

American Homes 4 Rent pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.9%. American Homes 4 Rent pays out 34.5% of its earnings in the form of a dividend. Corporate Office Properties Trust pays out 51.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Homes 4 Rent has increased its dividend for 1 consecutive years.

Volatility and Risk

American Homes 4 Rent has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Corporate Office Properties Trust has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares American Homes 4 Rent and Corporate Office Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Homes 4 Rent 12.45% 2.41% 1.58%
Corporate Office Properties Trust 13.24% 5.28% 2.15%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Homes 4 Rent and Corporate Office Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Homes 4 Rent 0 6 7 1 2.64
Corporate Office Properties Trust 0 0 6 0 3.00

American Homes 4 Rent presently has a consensus target price of $43.81, suggesting a potential upside of 10.37%. Corporate Office Properties Trust has a consensus target price of $31.25, suggesting a potential upside of 9.61%. Given American Homes 4 Rent’s higher probable upside, research analysts plainly believe American Homes 4 Rent is more favorable than Corporate Office Properties Trust.

Insider & Institutional Ownership

85.6% of American Homes 4 Rent shares are owned by institutional investors. 6.6% of American Homes 4 Rent shares are owned by company insiders. Comparatively, 0.7% of Corporate Office Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares American Homes 4 Rent and Corporate Office Properties Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Homes 4 Rent $1.18 billion 10.83 $140.37 million $1.16 34.22
Corporate Office Properties Trust $609.36 million 5.25 $97.37 million $2.12 13.44

American Homes 4 Rent has higher revenue and earnings than Corporate Office Properties Trust. Corporate Office Properties Trust is trading at a lower price-to-earnings ratio than American Homes 4 Rent, indicating that it is currently the more affordable of the two stocks.

Summary

American Homes 4 Rent beats Corporate Office Properties Trust on 11 of the 18 factors compared between the two stocks.

About American Homes 4 Rent

American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating single-family home as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Calabasas, CA.

About Corporate Office Properties Trust

Corporate Office Properties Trust, Inc. is a real estate investment trust. It acquires, develops, manages, sells, and leases out office properties and data centers. The firm operates through the following segments: Defense/Information Technology Locations, Regional Office, Wholesale Data Center, and Other. The company was founded in 1988 and is headquartered in Columbia, MD.

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