Sun Communities (NYSE:SUI – Get Free Report) and Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF – Get Free Report) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Profitability
This table compares Sun Communities and Boardwalk Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sun Communities | -36.00% | 5.02% | 2.82% |
| Boardwalk Real Estate Investment Trust | -7.44% | -1.00% | -0.54% |
Volatility & Risk
Sun Communities has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Boardwalk Real Estate Investment Trust has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sun Communities and Boardwalk Real Estate Investment Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sun Communities | $2.31 billion | 6.14 | $1.37 billion | ($6.16) | -19.25 |
| Boardwalk Real Estate Investment Trust | $457.06 million | 4.11 | $140.90 million | ($1.08) | -38.35 |
Sun Communities has higher revenue and earnings than Boardwalk Real Estate Investment Trust. Boardwalk Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.6% of Sun Communities shares are held by institutional investors. 1.6% of Sun Communities shares are held by insiders. Comparatively, 19.0% of Boardwalk Real Estate Investment Trust shares are held by 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.
Dividends
Sun Communities pays an annual dividend of $4.48 per share and has a dividend yield of 3.8%. Boardwalk Real Estate Investment Trust pays an annual dividend of $1.26 per share and has a dividend yield of 3.0%. Sun Communities pays out -72.7% of its earnings in the form of a dividend. Boardwalk Real Estate Investment Trust pays out -116.7% 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. Sun Communities has raised its dividend for 8 consecutive years. Sun Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent ratings for Sun Communities and Boardwalk Real Estate Investment Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sun Communities | 1 | 5 | 9 | 2 | 2.71 |
| Boardwalk Real Estate Investment Trust | 0 | 1 | 0 | 0 | 2.00 |
Sun Communities presently has a consensus target price of $135.65, suggesting a potential upside of 14.37%. Given Sun Communities’ stronger consensus rating and higher probable upside, analysts plainly believe Sun Communities is more favorable than Boardwalk Real Estate Investment Trust.
Summary
Sun Communities beats Boardwalk Real Estate Investment Trust on 13 of the 18 factors compared between the two stocks.
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.
About Boardwalk Real Estate Investment Trust
Boardwalk Real Estate Investment Trust is a Canadian real estate investment trust focused on owning, operating and managing multi-family residential properties. Its services include apartment leasing and property management, supported by resident amenities and online tools for rental applications, payments and service requests. The trust serves renters in several Canadian markets, including Alberta, British Columbia, Saskatchewan, Ontario and Quebec. Its residential communities are marketed under brands such as Boardwalk Living, Boardwalk Communities and Boardwalk Lifestyle.
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