Service Properties Trust (NASDAQ:SVC – Get Free Report) and American Homes 4 Rent (NYSE:AMH – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Profitability
This table compares Service Properties Trust and American Homes 4 Rent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Properties Trust | -12.87% | -22.67% | -3.37% |
| American Homes 4 Rent | 23.86% | 5.33% | 3.15% |
Insider & Institutional Ownership
77.6% of Service Properties Trust shares are owned by institutional investors. Comparatively, 91.9% of American Homes 4 Rent shares are owned by institutional investors. 1.4% of Service Properties Trust shares are owned by company insiders. Comparatively, 6.3% of American Homes 4 Rent shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Properties Trust | $1.90 billion | 0.25 | -$32.78 million | ($1.67) | -1.74 |
| American Homes 4 Rent | $1.73 billion | 7.76 | $412.43 million | $1.08 | 33.54 |
American Homes 4 Rent has lower revenue, but higher earnings 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 and Risk
Service Properties Trust has a beta of 2.19, suggesting that its share price is 119% more volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Service Properties Trust and American Homes 4 Rent, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Service Properties Trust | 1 | 0 | 1 | 0 | 2.00 |
| American Homes 4 Rent | 0 | 6 | 9 | 0 | 2.60 |
Service Properties Trust currently has a consensus price target of $5.25, suggesting a potential upside of 81.03%. American Homes 4 Rent has a consensus price target of $40.47, suggesting a potential upside of 11.71%. Given Service Properties Trust’s higher probable upside, research analysts clearly believe Service Properties Trust is more favorable than American Homes 4 Rent.
Dividends
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 an annual dividend of $1.20 per share and has a dividend yield of 3.3%. Service Properties Trust pays out -2.4% of its earnings in the form of a dividend. 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.
Summary
American Homes 4 Rent beats Service Properties Trust on 12 of the 16 factors compared between the two stocks.
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.
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.
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