Head to Head Review: Equity Lifestyle Properties (NYSE:ELS) & Elme Communities (NYSE:ELME)
by Tristan Rich · The Markets DailyElme Communities (NYSE:ELME – Get Free Report) and Equity Lifestyle Properties (NYSE:ELS – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Profitability
This table compares Elme Communities and Equity Lifestyle Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elme Communities | -54.57% | -13.15% | -7.52% |
| Equity Lifestyle Properties | 24.97% | 20.99% | 6.71% |
Risk & Volatility
Elme Communities has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares Elme Communities and Equity Lifestyle Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elme Communities | $241.93 million | 6.32 | -$13.10 million | ($1.52) | -11.41 |
| Equity Lifestyle Properties | $1.53 billion | 7.78 | $367.01 million | $1.99 | 30.79 |
Equity Lifestyle Properties has higher revenue and earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Equity Lifestyle Properties, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Elme Communities and Equity Lifestyle Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elme Communities | 1 | 3 | 0 | 0 | 1.75 |
| Equity Lifestyle Properties | 0 | 3 | 8 | 1 | 2.83 |
Elme Communities presently has a consensus target price of $18.50, indicating a potential upside of 6.66%. Equity Lifestyle Properties has a consensus target price of $70.50, indicating a potential upside of 15.06%. Given Equity Lifestyle Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Equity Lifestyle Properties is more favorable than Elme Communities.
Insider and Institutional Ownership
87.9% of Elme Communities shares are held by institutional investors. Comparatively, 97.2% of Equity Lifestyle Properties shares are held by institutional investors. 1.4% of Elme Communities shares are held by company insiders. Comparatively, 1.4% of Equity Lifestyle Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Equity Lifestyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.4%. Elme Communities pays out -47.4% of its earnings in the form of a dividend. Equity Lifestyle Properties pays out 103.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties has raised its dividend for 21 consecutive years. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Equity Lifestyle Properties beats Elme Communities on 15 of the 17 factors compared between the two stocks.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
About Equity Lifestyle Properties
Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.