Comparing America First Multifamily Investors, L.P. (ATAX) & People’s United Financial (PBCT)

America First Multifamily Investors, L.P. (NASDAQ: ATAX) and People’s United Financial (NASDAQ:PBCT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares America First Multifamily Investors, L.P. and People’s United Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
America First Multifamily Investors, L.P. $41.50 million 8.78 $19.28 million $0.32 18.91
People’s United Financial $1.34 billion 4.24 $300.38 million $0.89 18.90

People’s United Financial has higher revenue and earnings than America First Multifamily Investors, L.P.. People’s United Financial is trading at a lower price-to-earnings ratio than America First Multifamily Investors, L.P., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

America First Multifamily Investors, L.P. has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, People’s United Financial has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Dividends

America First Multifamily Investors, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 8.3%. People’s United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 4.1%. America First Multifamily Investors, L.P. pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. People’s United Financial pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. People’s United Financial has raised its dividend for 10 consecutive years.

Profitability

This table compares America First Multifamily Investors, L.P. and People’s United Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America First Multifamily Investors, L.P. 33.34% 6.63% 2.09%
People’s United Financial 18.88% 6.14% 0.75%

Insider & Institutional Ownership

7.3% of America First Multifamily Investors, L.P. shares are held by institutional investors. Comparatively, 75.9% of People’s United Financial shares are held by institutional investors. 1.3% of America First Multifamily Investors, L.P. shares are held by company insiders. Comparatively, 2.7% of People’s United Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for America First Multifamily Investors, L.P. and People’s United Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America First Multifamily Investors, L.P. 0 0 1 0 3.00
People’s United Financial 2 8 0 0 1.80

America First Multifamily Investors, L.P. currently has a consensus target price of $6.00, indicating a potential downside of 0.83%. People’s United Financial has a consensus target price of $18.03, indicating a potential upside of 7.20%. Given People’s United Financial’s higher possible upside, analysts clearly believe People’s United Financial is more favorable than America First Multifamily Investors, L.P..

Summary

People’s United Financial beats America First Multifamily Investors, L.P. on 9 of the 17 factors compared between the two stocks.

America First Multifamily Investors, L.P. Company Profile

America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.

People’s United Financial Company Profile

People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.

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