Critical Contrast: Elme Communities (ELME) vs. Its Competitors

Elme Communities (NYSE:ELMEGet Rating) is one of 330 publicly-traded companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its peers? We will compare Elme Communities to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Dividends

Elme Communities pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. Elme Communities pays out -174.4% of its earnings in the form of a dividend. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.3% and pay out 128.7% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Elme Communities and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Elme Communities $169.15 million $16.38 million -50.05
Elme Communities Competitors $788.69 million $171.63 million 17.00

Elme Communities’ peers have higher revenue and earnings than Elme Communities. Elme Communities 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 summary of recent ratings and target prices for Elme Communities and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elme Communities 0 1 0 0 2.00
Elme Communities Competitors 2106 11635 13209 295 2.43

Elme Communities currently has a consensus target price of $19.00, suggesting a potential downside of 2.66%. As a group, “Real estate investment trusts” companies have a potential upside of 19.48%. Given Elme Communities’ peers stronger consensus rating and higher possible upside, analysts clearly believe Elme Communities has less favorable growth aspects than its peers.

Volatility & Risk

Elme Communities has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Elme Communities’ peers have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

90.2% of Elme Communities shares are held by institutional investors. Comparatively, 67.4% of shares of all “Real estate investment trusts” companies are held by institutional investors. 1.0% of Elme Communities shares are held by insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Elme Communities and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elme Communities -17.19% -2.61% -1.80%
Elme Communities Competitors 16.48% -73.74% 2.49%

Summary

Elme Communities peers beat Elme Communities on 11 of the 14 factors compared.

Elme Communities Company Profile

(Get Rating)

Elme Communities owns and operates uniquely positioned real estate assets in the Washington Metro area. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. As of October 29, 2020, the Company's portfolio of 45 properties includes approximately 3.7 million square feet of commercial space and 6,863 multifamily apartment units. These 45 properties consist of 22 multifamily properties,15 office properties, and 8 retail centers. Our shares trade on the NYSE. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation's most competitive real estate markets.

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