Armada Hoffler Properties (NYSE:AHH) and Vonovia SE Depository Receipt (OTCMKTS:VONOY) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Armada Hoffler Properties pays an annual dividend of $0.84 per share and has a dividend yield of 5.4%. Vonovia SE Depository Receipt pays an annual dividend of $0.73 per share and has a dividend yield of 2.8%. Armada Hoffler Properties pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vonovia SE Depository Receipt pays out 25.5% of its earnings in the form of a dividend. Armada Hoffler Properties has raised its dividend for 5 consecutive years. Armada Hoffler Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
83.0% of Armada Hoffler Properties shares are held by institutional investors. 14.4% of Armada Hoffler Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Armada Hoffler Properties and Vonovia SE Depository Receipt’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Armada Hoffler Properties||9.55%||4.12%||1.56%|
|Vonovia SE Depository Receipt||N/A||N/A||N/A|
Valuation & Earnings
This table compares Armada Hoffler Properties and Vonovia SE Depository Receipt’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Armada Hoffler Properties||$193.32 million||4.08||$17.20 million||$1.03||15.20|
|Vonovia SE Depository Receipt||$2.70 billion||9.28||$2.72 billion||$2.86||9.04|
Vonovia SE Depository Receipt has higher revenue and earnings than Armada Hoffler Properties. Vonovia SE Depository Receipt is trading at a lower price-to-earnings ratio than Armada Hoffler Properties, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Armada Hoffler Properties and Vonovia SE Depository Receipt, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Armada Hoffler Properties||0||1||3||0||2.75|
|Vonovia SE Depository Receipt||0||0||0||0||N/A|
Armada Hoffler Properties currently has a consensus price target of $16.31, indicating a potential upside of 4.17%. Given Armada Hoffler Properties’ higher possible upside, analysts clearly believe Armada Hoffler Properties is more favorable than Vonovia SE Depository Receipt.
Risk & Volatility
Armada Hoffler Properties has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Vonovia SE Depository Receipt has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Armada Hoffler Properties beats Vonovia SE Depository Receipt on 11 of the 16 factors compared between the two stocks.
Armada Hoffler Properties Company Profile
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
Vonovia SE Depository Receipt Company Profile
Vonovia SE operates as an integrated real estate company in Germany. The company operates through three segments: Rental, Value-Add Business, and Sales. It offers apartments; provides property-related services; and sells single units, and buildings or plots of land. As of December 31, 2017, it had a real estate portfolio comprising 344,586 residential units; 89,588 garages and parking spaces; and 3,888 commercial units, as well as managed 62,631 residential units for other owners. The company was formerly known as Deutsche Annington Immobilien SE and changed its name to Vonovia SE in August 2015. Vonovia SE was founded in 1998 and is headquartered in Bochum, Germany.
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