Apartment Investment and Management (NYSE:AIV) and Equinix (NASDAQ:EQIX) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
Apartment Investment and Management has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Equinix has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Apartment Investment and Management and Equinix, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apartment Investment and Management||0||4||3||0||2.43|
Apartment Investment and Management currently has a consensus price target of $55.60, indicating a potential upside of 1.46%. Equinix has a consensus price target of $620.37, indicating a potential downside of 4.36%. Given Apartment Investment and Management’s higher possible upside, analysts clearly believe Apartment Investment and Management is more favorable than Equinix.
Valuation and Earnings
This table compares Apartment Investment and Management and Equinix’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apartment Investment and Management||$914.29 million||8.92||$474.08 million||$2.50||21.92|
|Equinix||$5.56 billion||9.43||$507.45 million||$22.81||28.44|
Equinix has higher revenue and earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.
Apartment Investment and Management pays an annual dividend of $1.64 per share and has a dividend yield of 3.0%. Equinix pays an annual dividend of $9.84 per share and has a dividend yield of 1.5%. Apartment Investment and Management pays out 65.6% of its earnings in the form of a dividend. Equinix pays out 43.1% 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. Apartment Investment and Management has increased its dividend for 8 consecutive years and Equinix has increased its dividend for 4 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
99.0% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 99.0% of Equinix shares are owned by institutional investors. 2.8% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 0.5% of Equinix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Apartment Investment and Management and Equinix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apartment Investment and Management||51.85%||25.88%||7.32%|
Equinix beats Apartment Investment and Management on 10 of the 18 factors compared between the two stocks.
Apartment Investment and Management Company Profile
Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country’s largest owners and operators of apartments, with ownership interests in 132 communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500.
Equinix Company Profile
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 52 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.
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