Analyzing Camden Property Trust (NYSE:CPT) & Sun Communities (NYSE:SUI)

Camden Property Trust (NYSE:CPT) and Sun Communities (NYSE:SUI) are both large-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Camden Property Trust has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Camden Property Trust and Sun Communities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camden Property Trust	1	11	3	0	2.13
Sun Communities	1	5	9	2	2.71

Camden Property Trust presently has a consensus price target of $111.35, indicating a potential upside of 11.47%. Sun Communities has a consensus price target of $135.65, indicating a potential upside of 13.91%. Given Sun Communities’ stronger consensus rating and higher possible upside, analysts clearly believe Sun Communities is more favorable than Camden Property Trust.

Dividends

Camden Property Trust pays an annual dividend of $4.24 per share and has a dividend yield of 4.2%. Sun Communities pays an annual dividend of $4.48 per share and has a dividend yield of 3.8%. Camden Property Trust pays out 39.5% of its earnings in the form of a dividend. Sun Communities pays out -72.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Camden Property Trust has increased its dividend for 4 consecutive years and Sun Communities has increased its dividend for 8 consecutive years.

Insider and Institutional Ownership

97.2% of Camden Property Trust shares are owned by institutional investors. Comparatively, 99.6% of Sun Communities shares are owned by institutional investors. 1.9% of Camden Property Trust shares are owned by company insiders. Comparatively, 1.6% of Sun Communities shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Camden Property Trust and Sun Communities”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camden Property Trust	$1.57 billion	6.35	$384.46 million	$10.73	9.31
Sun Communities	$2.31 billion	6.16	$1.37 billion	($6.16)	-19.33

Sun Communities has higher revenue and earnings than Camden Property Trust. Sun Communities 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.

Profitability

This table compares Camden Property Trust and Sun Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camden Property Trust	71.94%	26.22%	12.04%
Sun Communities	-36.00%	5.02%	2.82%

Summary

Sun Communities beats Camden Property Trust on 10 of the 17 factors compared between the two stocks.

About Camden Property Trust

Camden Property Trust is a real estate investment trust that owns, develops, acquires and manages apartment communities. Its residential properties serve renters in markets across the United States, with a focus on major metropolitan areas. Founded in 1982 and headquartered in Houston, Texas, Camden has grown into a multifamily housing operator. Its services include leasing apartments and managing the day-to-day operations of its communities.

About Sun Communities

Sun Communities, Inc. is a real estate investment trust that owns and operates manufactured housing communities, recreational vehicle (RV) communities and resorts, and marinas. Its properties serve long-term residents as well as vacationers and boaters, with offerings that include home sites, RV accommodations, boat slips and related amenities. Founded in 1975, the company has expanded beyond its original manufactured housing business through acquisitions and development. Its portfolio spans the United States, Canada and the United Kingdom.