Critical Analysis: Invitation Home (INVH) & Its Rivals

Invitation Home (NYSE:INVH) is one of 30 public companies in the “REIT – EQTY TRUST – RESID” industry, but how does it contrast to its competitors? We will compare Invitation Home to related companies based on the strength of its risk, valuation, analyst recommendations, profitability, dividends, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent recommendations for Invitation Home and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	9	0	2.50
Invitation Home Competitors	396	2264	2134	39	2.38

Invitation Home presently has a consensus price target of $37.97, indicating a potential upside of 16.87%. As a group, “REIT – EQTY TRUST – RESID” companies have a potential upside of 15.26%. Given Invitation Home’s stronger consensus rating and higher probable upside, equities analysts plainly believe Invitation Home is more favorable than its competitors.

Risk and Volatility

Invitation Home has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Invitation Home’s competitors have a beta of 0.64, meaning that their average stock price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares Invitation Home and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Invitation Home	$2.62 billion	$453.92 million	42.19
Invitation Home Competitors	$983.03 million	$190.00 million	22.43

Invitation Home has higher revenue and earnings than its competitors. Invitation Home is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Invitation Home and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	18.01%	4.82%	2.51%
Invitation Home Competitors	4.78%	0.70%	1.01%

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Invitation Home pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “REIT – EQTY TRUST – RESID” companies pay a dividend yield of 3.9% and pay out 202.8% of their earnings in the form of a dividend. Invitation Home has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 79.8% of shares of all “REIT – EQTY TRUST – RESID” companies are owned by institutional investors. 0.3% of Invitation Home shares are owned by company insiders. Comparatively, 6.0% of shares of all “REIT – EQTY TRUST – RESID” companies are owned by company 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.

Summary

Invitation Home beats its competitors on 12 of the 15 factors compared.

Invitation Home Company Profile

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.