Equity Lifestyle Properties (NYSE:ELS – Get Free Report) and Sun Communities (NYSE:SUI – Get Free Report) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Dividends
Equity Lifestyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.3%. Sun Communities pays an annual dividend of $4.16 per share and has a dividend yield of 3.3%. Equity Lifestyle Properties pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sun Communities pays out 52.1% of its earnings in the form of a dividend. Equity Lifestyle Properties has raised its dividend for 21 consecutive years and Sun Communities has raised its dividend for 8 consecutive years. Equity Lifestyle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Equity Lifestyle Properties and Sun Communities, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity Lifestyle Properties | 0 | 4 | 7 | 1 | 2.75 |
| Sun Communities | 1 | 8 | 5 | 0 | 2.29 |
Volatility and Risk
Equity Lifestyle Properties has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
97.2% of Equity Lifestyle Properties shares are owned by institutional investors. Comparatively, 99.6% of Sun Communities shares are owned by institutional investors. 1.4% of Equity Lifestyle Properties shares are owned by company insiders. Comparatively, 1.8% of Sun Communities shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Equity Lifestyle Properties and Sun Communities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equity Lifestyle Properties | 24.97% | 20.99% | 6.71% |
| Sun Communities | 42.58% | -4.51% | -2.19% |
Valuation and Earnings
This table compares Equity Lifestyle Properties and Sun Communities”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equity Lifestyle Properties | $1.44 billion | 8.36 | $367.01 million | $1.99 | 31.19 |
| Sun Communities | $3.22 billion | 4.86 | $101.80 million | $7.98 | 15.87 |
Equity Lifestyle Properties has higher earnings, but lower revenue than Sun Communities. Sun Communities 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.
Summary
Equity Lifestyle Properties beats Sun Communities on 11 of the 18 factors compared between the two stocks.
About Equity Lifestyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.
About Sun Communities
Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.
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