Mid-America Apartment Communities (NYSE: MAA) and Associated Estates Realty (NYSE:AEC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitabiliy, analyst recommendations, dividends, institutional ownership and risk.
Dividends
Mid-America Apartment Communities pays an annual dividend of $3.48 per share and has a dividend yield of 3.4%. Associated Estates Realty does not pay a dividend. Mid-America Apartment Communities pays out 148.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mid-America Apartment Communities has increased its dividend for 5 consecutive years and Associated Estates Realty has increased its dividend for 6 consecutive years.
Earnings & Valuation
This table compares Mid-America Apartment Communities and Associated Estates Realty’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Mid-America Apartment Communities | $1.35 billion | 8.71 | $761.51 million | $2.34 | 44.24 |
| Associated Estates Realty | N/A | N/A | N/A | N/A | N/A |
Mid-America Apartment Communities has higher revenue and earnings than Associated Estates Realty.
Institutional and Insider Ownership
92.2% of Mid-America Apartment Communities shares are owned by institutional investors. 1.3% of Mid-America Apartment Communities shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Mid-America Apartment Communities and Associated Estates Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mid-America Apartment Communities | 15.80% | 4.31% | 2.38% |
| Associated Estates Realty | 60.04% | 18.10% | 7.71% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Mid-America Apartment Communities and Associated Estates Realty, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mid-America Apartment Communities | 0 | 2 | 10 | 0 | 2.83 |
| Associated Estates Realty | 0 | 0 | 0 | 0 | N/A |
Mid-America Apartment Communities presently has a consensus price target of $107.36, suggesting a potential upside of 3.70%. Given Mid-America Apartment Communities’ higher probable upside, equities analysts plainly believe Mid-America Apartment Communities is more favorable than Associated Estates Realty.
Summary
Mid-America Apartment Communities beats Associated Estates Realty on 6 of the 11 factors compared between the two stocks.
About Mid-America Apartment Communities
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.
About Associated Estates Realty
Associated Estates Realty Corporation is a self-administered and self-managed equity real estate investment trust (REIT). The Company is engaged primarily in the ownership and operation of multifamily apartment units. It specializes in multifamily ownership, operation, acquisition, development, disposition and property management activities. Its operating portfolio consists of approximately 49 apartment communities containing around 12,734 units in eight states that are owned, either directly or indirectly, through its subsidiaries. It also owns a commercial building in Los Angeles, California containing approximately 78,800 total square feet of office and commercial space. The Company also earns revenue from rental payments from the leasing of apartment units. It owns a taxable REIT subsidiary, which performs construction management services in connection with the development of multifamily properties that it owns, including consolidated and unconsolidated joint ventures.
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