Analyzing Vornado Realty Trust (NYSE:VNO) and American Homes 4 Rent (NYSE:AMH)

Vornado Realty Trust (NYSE:VNO) and American Homes 4 Rent (NYSE:AMH) 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	0.46%	1.72%	0.48%
American Homes 4 Rent	21.51%	4.76%	2.84%

Valuation & Earnings

This table compares Vornado Realty Trust and American Homes 4 Rent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	4.72	$105.49 million	($0.29)	-154.69
American Homes 4 Rent	$1.62 billion	8.55	$380.17 million	$0.96	39.15

American Homes 4 Rent has lower revenue, but higher earnings than Vornado Realty Trust. Vornado Realty 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.

Institutional & Insider Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 91.9% of American Homes 4 Rent shares are owned by institutional investors. 8.1% of Vornado Realty Trust shares are owned by company insiders. Comparatively, 6.1% of American Homes 4 Rent 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.

Risk and Volatility

Vornado Realty Trust has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Vornado Realty Trust and American Homes 4 Rent, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	2	6	2	0	2.00
American Homes 4 Rent	0	3	12	0	2.80

Vornado Realty Trust currently has a consensus price target of $36.58, indicating a potential downside of 18.47%. American Homes 4 Rent has a consensus price target of $41.60, indicating a potential upside of 10.70%. Given American Homes 4 Rent’s stronger consensus rating and higher possible upside, analysts clearly believe American Homes 4 Rent is more favorable than Vornado Realty Trust.

Dividends

Vornado Realty Trust pays an annual dividend of $0.30 per share and has a dividend yield of 0.7%. American Homes 4 Rent pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Vornado Realty Trust pays out -103.4% of its earnings in the form of a dividend. American Homes 4 Rent pays out 108.3% 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 Vornado Realty Trust on 12 of the 16 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

About American Homes 4 Rent

AMH (NYSE: AMH) is a leading large-scale integrated owner, operator and developer of single-family rental homes. We're an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing and managing homes as rental properties. Our goal is to simplify the experience of leasing a home and deliver peace of mind to households across the country. In recent years, we've been named one of Fortune's 2023 Best Workplaces in Real Estate, a 2023 Great Place to Work, a 2023 Most Loved Workplace, a 2023 Top U.S. Homebuilder by Builder100, and one of America's Most Responsible Companies 2023 and America's Most Trustworthy Companies 2023 by Newsweek and Statista Inc. As of December 31, 2023, we owned nearly 60,000 single-family properties in the Southeast, Midwest, Southwest and Mountain West regions of the United States.