UMH Properties (NYSE:UMH) versus Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) Head-To-Head Review

UMH Properties (NYSE:UMH – Get Rating) and Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Dividends

UMH Properties pays an annual dividend of $0.82 per share and has a dividend yield of 5.5%. Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.58 per share and has a dividend yield of 6.9%. UMH Properties pays out -122.4% of its earnings in the form of a dividend. Hannon Armstrong Sustainable Infrastructure Capital pays out 752.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has raised its dividend for 3 consecutive years and Hannon Armstrong Sustainable Infrastructure Capital has raised its dividend for 5 consecutive years. Hannon Armstrong Sustainable Infrastructure Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

UMH Properties has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.

Insider & Institutional Ownership

71.3% of UMH Properties shares are held by institutional investors. Comparatively, 82.8% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. 9.1% of UMH Properties shares are held by insiders. Comparatively, 3.4% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares UMH Properties and Hannon Armstrong Sustainable Infrastructure Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMH Properties	-4.78%	-3.04%	-0.72%
Hannon Armstrong Sustainable Infrastructure Capital	8.09%	10.85%	3.77%

Earnings and Valuation

This table compares UMH Properties and Hannon Armstrong Sustainable Infrastructure Capital’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$195.78 million	4.66	-$4.85 million	($0.67)	-22.40
Hannon Armstrong Sustainable Infrastructure Capital	$239.74 million	8.81	$41.50 million	$0.21	109.48

Hannon Armstrong Sustainable Infrastructure Capital has higher revenue and earnings than UMH Properties. UMH Properties is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for UMH Properties and Hannon Armstrong Sustainable Infrastructure Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	0	4	0	3.00
Hannon Armstrong Sustainable Infrastructure Capital	0	2	4	0	2.67

UMH Properties currently has a consensus price target of $21.75, indicating a potential upside of 44.90%. Hannon Armstrong Sustainable Infrastructure Capital has a consensus price target of $43.71, indicating a potential upside of 90.14%. Given Hannon Armstrong Sustainable Infrastructure Capital’s higher possible upside, analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than UMH Properties.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats UMH Properties on 12 of the 15 factors compared between the two stocks.

About UMH Properties

(Get Rating)

UMH Properties, Inc. operates as a real estate investment trust. It engages in the ownership and operation of manufactured home communities in seven states throughout the northeast. These states include New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. Manufactured home communities provide long-term appreciation, recession resistant qualities, and stable income streams. The firm also leases manufactured homes to residents. It designs accommodate detached, single-family manufactured homes which are produced off-site by manufacturers and installed on sites within the communities. The company was founded by Eugene W. Landy in 1968 and is headquartered in Freehold, NJ.

About Hannon Armstrong Sustainable Infrastructure Capital

(Get Rating)

Hannon Armstrong Sustainable Infrastructure Capital, Inc. engages in the business of investing in climate solutions and the provision of capital to assets developed by companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. It focuses on generating attractive returns from a diversified portfolio of project company investments with long-term, predictable cash flows from proven technologies that reduce carbon emissions or increase resilience to climate change. The company was founded on November 7, 2012 and is headquartered in Annapolis, MD.