Contrasting American Campus Communities (ACC) & Potlatchdeltic (PCH)

Potlatchdeltic (NASDAQ: PCH) and American Campus Communities (NYSE:ACC) are both mid-cap construction companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Dividends

Potlatchdeltic pays an annual dividend of $1.60 per share and has a dividend yield of 3.2%. American Campus Communities pays an annual dividend of $1.84 per share and has a dividend yield of 4.3%. Potlatchdeltic pays out 67.8% of its earnings in the form of a dividend. American Campus Communities pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Campus Communities has raised its dividend for 5 consecutive years. American Campus Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Potlatchdeltic and American Campus Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Potlatchdeltic 11.54% 24.94% 9.03%
American Campus Communities 7.39% 1.73% 0.91%

Risk and Volatility

Potlatchdeltic has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, American Campus Communities has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Potlatchdeltic and American Campus Communities, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Potlatchdeltic 0 4 3 0 2.43
American Campus Communities 1 2 11 0 2.71

Potlatchdeltic currently has a consensus target price of $49.60, indicating a potential downside of 1.29%. American Campus Communities has a consensus target price of $47.21, indicating a potential upside of 9.94%. Given American Campus Communities’ stronger consensus rating and higher possible upside, analysts clearly believe American Campus Communities is more favorable than Potlatchdeltic.

Institutional & Insider Ownership

82.1% of Potlatchdeltic shares are owned by institutional investors. Comparatively, 97.9% of American Campus Communities shares are owned by institutional investors. 3.0% of Potlatchdeltic shares are owned by company insiders. Comparatively, 0.7% of American Campus Communities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Potlatchdeltic and American Campus Communities’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Potlatchdeltic $678.59 million 4.65 $86.45 million $2.36 21.29
American Campus Communities $796.45 million 7.37 $69.03 million $2.31 18.59

Potlatchdeltic has higher earnings, but lower revenue than American Campus Communities. American Campus Communities is trading at a lower price-to-earnings ratio than Potlatchdeltic, indicating that it is currently the more affordable of the two stocks.

Summary

Potlatchdeltic beats American Campus Communities on 9 of the 17 factors compared between the two stocks.

Potlatchdeltic Company Profile

PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources. More information can be found at www.potlatchdeltic.com.

American Campus Communities Company Profile

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of December 31, 2017, American Campus Communities owned 169 student housing properties containing approximately 104,100 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 206 properties with approximately 134,100 beds. Visit www.americancampus.com.

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