Head to Head Review: Armada Hoffler Properties (NYSE:AHRT) vs. Apartment Investment and Management (NYSE:AIV)

Apartment Investment and Management (NYSE:AIV) and Armada Hoffler Properties (NYSE:AHRT) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Profitability

This table compares Apartment Investment and Management and Armada Hoffler Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	316.79%	9.05%	0.96%
Armada Hoffler Properties	0.95%	0.31%	0.08%

Dividends

Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 25.3%. Armada Hoffler Properties pays an annual dividend of $0.56 per share and has a dividend yield of 10.6%. Apartment Investment and Management pays out 26.0% of its earnings in the form of a dividend. Armada Hoffler Properties pays out -700.0% 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.

Valuation and Earnings

This table compares Apartment Investment and Management and Armada Hoffler Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Investment and Management	$138.49 million	4.14	$554.01 million	$3.88	1.03
Armada Hoffler Properties	$285.20 million	1.91	$5.60 million	($0.08)	-65.81

Apartment Investment and Management has higher earnings, but lower revenue than Armada Hoffler Properties. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than Apartment Investment and Management, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Apartment Investment and Management has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Apartment Investment and Management and Armada Hoffler Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	1	0	1	0	2.00
Armada Hoffler Properties	3	1	1	1	2.00

Apartment Investment and Management presently has a consensus target price of $10.00, suggesting a potential upside of 150.94%. Armada Hoffler Properties has a consensus target price of $7.70, suggesting a potential upside of 46.25%. Given Apartment Investment and Management’s higher probable upside, equities research analysts plainly believe Apartment Investment and Management is more favorable than Armada Hoffler Properties.

Institutional & Insider Ownership

83.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 66.4% of Armada Hoffler Properties shares are owned by institutional investors. 4.0% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 11.9% of Armada Hoffler Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Apartment Investment and Management beats Armada Hoffler Properties on 11 of the 15 factors compared between the two stocks.

About Apartment Investment and Management

Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.

About Armada Hoffler Properties

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.