Mid-America Apartment Communities (NYSE: MAA) and New Senior Investment Group (NYSE:SNR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.
Mid-America Apartment Communities pays an annual dividend of $3.48 per share and has a dividend yield of 3.4%. New Senior Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 13.2%. Mid-America Apartment Communities pays out 156.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Senior Investment Group pays out -358.6% of its earnings in the form of a dividend. New Senior Investment Group has increased its dividend for 6 consecutive years. New Senior Investment Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Mid-America Apartment Communities and New Senior Investment Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mid-America Apartment Communities||$1.13 billion||10.33||$212.22 million||$2.22||46.07|
|New Senior Investment Group||$472.44 million||1.37||-$72.24 million||($0.29)||-27.24|
Mid-America Apartment Communities has higher revenue and earnings than New Senior Investment Group. New Senior Investment Group is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.
This table compares Mid-America Apartment Communities and New Senior Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mid-America Apartment Communities||16.73%||4.22%||2.40%|
|New Senior Investment Group||-5.25%||-4.49%||-0.87%|
Risk and Volatility
Mid-America Apartment Communities has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, New Senior Investment Group has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Institutional and Insider Ownership
93.0% of Mid-America Apartment Communities shares are held by institutional investors. Comparatively, 67.4% of New Senior Investment Group shares are held by institutional investors. 1.3% of Mid-America Apartment Communities shares are held by company insiders. Comparatively, 1.0% of New Senior Investment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Mid-America Apartment Communities and New Senior Investment Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mid-America Apartment Communities||0||5||7||0||2.58|
|New Senior Investment Group||1||2||1||0||2.00|
Mid-America Apartment Communities presently has a consensus price target of $110.80, indicating a potential upside of 8.34%. New Senior Investment Group has a consensus price target of $9.67, indicating a potential upside of 22.36%. Given New Senior Investment Group’s higher possible upside, analysts plainly believe New Senior Investment Group is more favorable than Mid-America Apartment Communities.
Mid-America Apartment Communities beats New Senior Investment Group on 12 of the 17 factors compared between the two stocks.
Mid-America Apartment Communities Company Profile
Mid-America Apartment Communities, Inc. is a multifamily focused, self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and develops apartment communities primarily located in the Southeast and Southwest regions of the United States. It operates through three segments: Large market same store, Secondary market same store and Non-Same Store and Other. Its Large market same store communities are communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units that it has owned. Its Secondary market same store communities are communities in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or markets with populations of less than one million that it has owned. Its Non-same store communities and other includes recent acquisitions and communities in development or lease-up communities.
New Senior Investment Group Company Profile
New Senior Investment Group Inc. is a real estate investment trust with a diversified portfolio of primarily private pay senior housing properties located across the United States. The Company operates through two segments: Managed Properties and Triple Net Lease Properties. As of December 31, 2016, the Company owned a diversified portfolio of 152 primarily private pay senior housing properties located across 37 states. Under its Managed Properties segment, the Company invests in senior housing properties throughout the United States and engages property managers to manage those senior housing properties. As of December 31, 2016, the Company owned 94 properties under property management agreements with the property managers. Under its Triple Net Lease Properties segment, the Company invests in senior housing and healthcare properties throughout the United States, and leases those properties to healthcare operating companies under triple net leases.
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