Analyzing Camden Property Trust (CPT) & Equity Lifestyle Properties (ELS)

Camden Property Trust (NYSE: CPT) and Equity Lifestyle Properties (NYSE:ELS) are both mid-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Camden Property Trust has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Dividends

Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.7%. Equity Lifestyle Properties pays an annual dividend of $1.95 per share and has a dividend yield of 2.4%. Camden Property Trust pays out 140.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust has raised its dividend for 7 consecutive years and Equity Lifestyle Properties has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

93.0% of Camden Property Trust shares are held by institutional investors. Comparatively, 97.0% of Equity Lifestyle Properties shares are held by institutional investors. 4.7% of Camden Property Trust shares are held by insiders. Comparatively, 6.1% of Equity Lifestyle Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Camden Property Trust and Equity Lifestyle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Camden Property Trust 21.80% 6.01% 3.26%
Equity Lifestyle Properties 22.41% 21.47% 6.03%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Camden Property Trust and Equity Lifestyle Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Camden Property Trust 0 5 9 0 2.64
Equity Lifestyle Properties 0 5 0 0 2.00

Camden Property Trust currently has a consensus target price of $91.64, indicating a potential upside of 12.87%. Equity Lifestyle Properties has a consensus target price of $86.80, indicating a potential upside of 5.14%. Given Camden Property Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Camden Property Trust is more favorable than Equity Lifestyle Properties.

Valuation and Earnings

This table compares Camden Property Trust and Equity Lifestyle Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Camden Property Trust $900.90 million 8.75 $196.42 million $2.13 38.12
Equity Lifestyle Properties $925.31 million 7.90 $189.90 million $2.17 38.05

Camden Property Trust has higher earnings, but lower revenue than Equity Lifestyle Properties. Equity Lifestyle Properties is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Camden Property Trust Company Profile

Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.

Equity Lifestyle Properties Company Profile

Equity LifeStyle Properties, Inc. is a real estate investment trust (REIT). The Company is an owner and operator of lifestyle-oriented properties (properties) consisting primarily of manufactured home (MH) communities and recreational vehicle (RV) resorts and campgrounds. The Company operates through two segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties and the Home Sales and Rentals Operations segment purchases, sells and leases homes at the properties. It leases individual developed areas (sites) with access to utilities for placement of factory built homes, cottages, cabins or RVs. As of December 31, 2016, the Company’s property portfolio included 391 properties consisted of 146,610 residential sites. Its properties are designed for home options of various sizes and designs that are produced off-site by third-party manufacturers, installed and set on designated sites within the properties.

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