Realty Income (NYSE:O – Get Free Report) and Apartment Investment and Management (NYSE:AIV – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Realty Income and Apartment Investment and Management’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Realty Income | 17.89% | 2.36% | 1.35% |
Apartment Investment and Management | -113.14% | -51.94% | -10.54% |
Institutional and Insider Ownership
70.8% of Realty Income shares are held by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are held by institutional investors. 0.1% of Realty Income shares are held by company insiders. Comparatively, 3.0% of Apartment Investment and Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Realty Income | $4.72 billion | 11.40 | $872.31 million | $1.08 | 57.18 |
Apartment Investment and Management | $198.40 million | 6.32 | -$166.20 million | ($1.18) | -7.34 |
Realty Income has higher revenue and earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Realty Income has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Realty Income and Apartment Investment and Management, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Realty Income | 0 | 8 | 6 | 0 | 2.43 |
Apartment Investment and Management | 0 | 0 | 0 | 0 | N/A |
Realty Income currently has a consensus target price of $63.63, indicating a potential upside of 3.05%. Given Realty Income’s higher probable upside, analysts plainly believe Realty Income is more favorable than Apartment Investment and Management.
Dividends
Realty Income pays an annual dividend of $3.16 per share and has a dividend yield of 5.1%. Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 11.7%. Realty Income pays out 292.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out -85.6% of its earnings in the form of a dividend. Realty Income has increased its dividend for 32 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Realty Income beats Apartment Investment and Management on 11 of the 16 factors compared between the two stocks.
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income's public listing in 1994 (NYSE: O).
About Apartment Investment and Management
Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco’s mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.
Receive News & Ratings for Realty Income Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Realty Income and related companies with MarketBeat.com's FREE daily email newsletter.