Head-To-Head Comparison: Office Properties Income Trust (NASDAQ:OPI) versus American Homes 4 Rent (NYSE:AMH)

American Homes 4 Rent (NYSE:AMH) and Office Properties Income Trust (NASDAQ:OPI) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Risk and Volatility

American Homes 4 Rent has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Institutional and Insider Ownership

91.9% of American Homes 4 Rent shares are owned by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are owned by institutional investors. 6.0% of American Homes 4 Rent shares are owned by insiders. Comparatively, 1.8% of Office Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

American Homes 4 Rent pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 18.7%. American Homes 4 Rent pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Office Properties Income Trust pays out -0.8% of its earnings in the form of a dividend. American Homes 4 Rent has increased its dividend for 5 consecutive years. Office Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for American Homes 4 Rent and Office Properties Income Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Homes 4 Rent	0	6	7	0	2.54
Office Properties Income Trust	0	0	0	0	0.00

American Homes 4 Rent presently has a consensus price target of $41.00, indicating a potential upside of 14.45%. Given American Homes 4 Rent’s stronger consensus rating and higher probable upside, equities analysts clearly believe American Homes 4 Rent is more favorable than Office Properties Income Trust.

Earnings & Valuation

This table compares American Homes 4 Rent and Office Properties Income Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Homes 4 Rent	$1.73 billion	7.69	$412.43 million	$1.11	32.27
Office Properties Income Trust	$501.98 million	0.03	-$136.11 million	($4.90)	-0.04

American Homes 4 Rent has higher revenue and earnings than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than American Homes 4 Rent, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Homes 4 Rent and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Homes 4 Rent	23.72%	5.60%	3.29%
Office Properties Income Trust	-62.99%	-25.56%	-8.02%

Summary

American Homes 4 Rent beats Office Properties Income Trust on 14 of the 17 factors compared between the two stocks.

About American Homes 4 Rent

American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.