Head-To-Head Survey: American Homes 4 Rent (AMH) & Its Peers

American Homes 4 Rent (NYSE:AMH) is one of 57 public companies in the “Residential REITs” industry, but how does it contrast to its peers? We will compare American Homes 4 Rent to similar businesses based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

American Homes 4 Rent has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, American Homes 4 Rent’s peers have a beta of 0.68, indicating that their average stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

91.9% of American Homes 4 Rent shares are held by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are held by institutional investors. 5.7% of American Homes 4 Rent shares are held by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are held 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.

Valuation and Earnings

This table compares American Homes 4 Rent and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Homes 4 Rent	$1.85 billion	$452.97 million	25.03
American Homes 4 Rent Competitors	$774.73 million	$238.42 million	37.50

American Homes 4 Rent has higher revenue and earnings than its peers. American Homes 4 Rent is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for American Homes 4 Rent and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Homes 4 Rent	0	6	10	1	2.71
American Homes 4 Rent Competitors	618	3259	3375	147	2.41

American Homes 4 Rent presently has a consensus price target of $35.94, indicating a potential upside of 13.96%. As a group, “Residential REITs” companies have a potential upside of 13.57%. Given American Homes 4 Rent’s stronger consensus rating and higher probable upside, analysts clearly believe American Homes 4 Rent is more favorable than its peers.

Profitability

This table compares American Homes 4 Rent and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Homes 4 Rent	25.53%	6.25%	3.63%
American Homes 4 Rent Competitors	9.87%	2.47%	2.34%

Dividends

American Homes 4 Rent pays an annual dividend of $1.32 per share and has a dividend yield of 4.2%. American Homes 4 Rent pays out 104.8% 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 4.7% and pay out 248.1% of their earnings in the form of a dividend. American Homes 4 Rent has raised its dividend for 5 consecutive years.

Summary

American Homes 4 Rent beats its peers on 12 of the 15 factors compared.

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 of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.