Head to Head Survey: ARBOR RLTY TR I/SH (NYSE:ABR) vs. Equity Lifestyle Properties (NYSE:ELS)

Equity Lifestyle Properties (NYSE:ELS) and ARBOR RLTY TR I/SH (NYSE:ABR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

94.6% of Equity Lifestyle Properties shares are held by institutional investors. Comparatively, 48.4% of ARBOR RLTY TR I/SH shares are held by institutional investors. 5.1% of Equity Lifestyle Properties shares are held by company insiders. Comparatively, 10.5% of ARBOR RLTY TR I/SH shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Equity Lifestyle Properties and ARBOR RLTY TR I/SH, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Lifestyle Properties 0 4 1 0 2.20
ARBOR RLTY TR I/SH 1 1 3 0 2.40

Equity Lifestyle Properties currently has a consensus price target of $106.70, indicating a potential downside of 17.06%. ARBOR RLTY TR I/SH has a consensus price target of $13.11, indicating a potential upside of 4.05%. Given ARBOR RLTY TR I/SH’s stronger consensus rating and higher possible upside, analysts plainly believe ARBOR RLTY TR I/SH is more favorable than Equity Lifestyle Properties.

Dividends

Equity Lifestyle Properties pays an annual dividend of $2.45 per share and has a dividend yield of 1.9%. ARBOR RLTY TR I/SH pays an annual dividend of $1.16 per share and has a dividend yield of 9.2%. Equity Lifestyle Properties pays out 63.3% of its earnings in the form of a dividend. ARBOR RLTY TR I/SH pays out 95.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties has increased its dividend for 8 consecutive years and ARBOR RLTY TR I/SH has increased its dividend for 7 consecutive years.

Profitability

This table compares Equity Lifestyle Properties and ARBOR RLTY TR I/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity Lifestyle Properties 27.02% 22.00% 6.89%
ARBOR RLTY TR I/SH 44.17% 13.20% 2.69%

Earnings and Valuation

This table compares Equity Lifestyle Properties and ARBOR RLTY TR I/SH’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Lifestyle Properties $986.65 million 11.87 $212.61 million $3.87 33.24
ARBOR RLTY TR I/SH $251.77 million 4.72 $115.86 million $1.21 10.41

Equity Lifestyle Properties has higher revenue and earnings than ARBOR RLTY TR I/SH. ARBOR RLTY TR I/SH is trading at a lower price-to-earnings ratio than Equity Lifestyle Properties, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Equity Lifestyle Properties has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, ARBOR RLTY TR I/SH has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Summary

Equity Lifestyle Properties beats ARBOR RLTY TR I/SH on 10 of the 17 factors compared between the two stocks.

Equity Lifestyle Properties Company Profile

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of January 28, 2019, we own or have an interest in 409 quality properties in 33 states and British Columbia consisting of 153,984 sites.

ARBOR RLTY TR I/SH Company Profile

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company operates in two segments, Structured Business and Agency Business. It primarily invests in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related notes and various mortgage-related securities. The company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; and junior participation financing in the form of a junior participating interest in the senior debt. In addition, it underwrites, originates, sells, and services multifamily mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2003 and is headquartered in Uniondale, New York.

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