Critical Review: Camden Property Trust (CPT) versus Post Properties (PPS)
Camden Property Trust (NYSE: CPT) and Post Properties (NYSE:PPS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Risk and Volatility
Camden Property Trust has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Post Properties has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Camden Property Trust and Post Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camden Property Trust||0||5||9||0||2.64|
Camden Property Trust currently has a consensus target price of $92.64, indicating a potential upside of 0.07%. Given Camden Property Trust’s higher possible upside, research analysts plainly believe Camden Property Trust is more favorable than Post Properties.
Valuation & Earnings
This table compares Camden Property Trust and Post Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Camden Property Trust||$897.76 million||9.04||$506.29 million||$4.47||20.71|
Camden Property Trust has higher revenue and earnings than Post Properties. Camden Property Trust is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.6% of Camden Property Trust shares are owned by institutional investors. Comparatively, 94.3% of Post Properties shares are owned by institutional investors. 4.7% of Camden Property Trust shares are owned by insiders. Comparatively, 2.2% of Post Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Camden Property Trust and Post Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camden Property Trust||46.10%||13.17%||6.81%|
Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.2%. Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Camden Property Trust pays out 67.1% of its earnings in the form of a dividend. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust has raised its dividend for 6 consecutive years and Post Properties has raised its dividend for 6 consecutive years. Camden Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Camden Property Trust beats Post Properties on 11 of the 12 factors compared between the two stocks.
Camden Property Trust Company Profile
Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.
Post Properties Company Profile
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
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