American Homes 4 Rent (NYSE:AMH) vs. Service Properties Trust (NASDAQ:SVC) Head-To-Head Survey

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

Earnings & Valuation

This table compares American Homes 4 Rent and Service Properties 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	7.76	$412.43 million	$1.08	33.54
Service Properties Trust	$1.90 billion	0.25	-$32.78 million	($1.67)	-1.74

American Homes 4 Rent has higher earnings, but lower revenue than Service Properties Trust. Service Properties 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.

Volatility & Risk

American Homes 4 Rent has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Homes 4 Rent	23.86%	5.33%	3.15%
Service Properties Trust	-12.87%	-22.67%	-3.37%

Analyst Recommendations

This is a breakdown of current ratings for American Homes 4 Rent and Service Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Homes 4 Rent	0	6	9	0	2.60
Service Properties Trust	1	0	1	0	2.00

American Homes 4 Rent currently has a consensus target price of $40.47, indicating a potential upside of 11.71%. Service Properties Trust has a consensus target price of $5.25, indicating a potential upside of 81.03%. Given Service Properties Trust’s higher possible upside, analysts clearly believe Service Properties Trust is more favorable than American Homes 4 Rent.

Insider and Institutional Ownership

91.9% of American Homes 4 Rent shares are owned by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are owned by institutional investors. 6.3% of American Homes 4 Rent shares are owned by insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

American Homes 4 Rent pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.4%. American Homes 4 Rent pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Service Properties Trust pays out -2.4% of its earnings in the form of a dividend.

Summary

American Homes 4 Rent beats Service Properties Trust on 12 of the 16 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 Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.