Potlatchdeltic (PCH) and Equity Lifestyle Properties (ELS) Head to Head Survey

Potlatchdeltic (NASDAQ:PCH) and Equity Lifestyle Properties (NYSE:ELS) are both mid-cap construction companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares Potlatchdeltic and Equity Lifestyle Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Potlatchdeltic $678.59 million 3.23 $86.45 million $2.36 14.81
Equity Lifestyle Properties $925.31 million 9.85 $197.58 million $3.60 28.20

Equity Lifestyle Properties has higher revenue and earnings than Potlatchdeltic. Potlatchdeltic 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.

Profitability

This table compares Potlatchdeltic and Equity Lifestyle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Potlatchdeltic 14.23% 15.77% 7.90%
Equity Lifestyle Properties 22.40% 19.69% 5.96%

Dividends

Potlatchdeltic pays an annual dividend of $1.60 per share and has a dividend yield of 4.6%. Equity Lifestyle Properties pays an annual dividend of $2.20 per share and has a dividend yield of 2.2%. Potlatchdeltic pays out 67.8% of its earnings in the form of a dividend. Equity Lifestyle Properties pays out 61.1% 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. Potlatchdeltic has increased its dividend for 2 consecutive years and Equity Lifestyle Properties has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Potlatchdeltic and Equity Lifestyle Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Potlatchdeltic 0 1 3 0 2.75
Equity Lifestyle Properties 0 4 2 0 2.33

Potlatchdeltic presently has a consensus target price of $47.00, suggesting a potential upside of 34.52%. Equity Lifestyle Properties has a consensus target price of $98.25, suggesting a potential downside of 3.21%. Given Potlatchdeltic’s stronger consensus rating and higher probable upside, analysts plainly believe Potlatchdeltic is more favorable than Equity Lifestyle Properties.

Volatility and Risk

Potlatchdeltic has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

84.9% of Potlatchdeltic shares are owned by institutional investors. Comparatively, 95.0% of Equity Lifestyle Properties shares are owned by institutional investors. 3.0% of Potlatchdeltic shares are owned by company insiders. Comparatively, 5.2% of Equity Lifestyle Properties shares are owned 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.

Summary

Equity Lifestyle Properties beats Potlatchdeltic on 11 of the 17 factors compared between the two stocks.

About Potlatchdeltic

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources.

About Equity Lifestyle Properties

We are a self-administered, self-managed real estate investment trust (“REIT”) with headquarters in Chicago. As of October 22, 2018, we own or have an interest in 411 quality properties in 32 states and British Columbia consisting of 153,847 sites.

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