Sun Communities (NYSE:SUI) & Rexford Industrial Realty (NYSE:REXR) Financial Contrast

Rexford Industrial Realty (NYSE:REXR) and Sun Communities (NYSE:SUI) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Rexford Industrial Realty and Sun Communities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rexford Industrial Realty	1	6	3	0	2.20
Sun Communities	1	8	5	0	2.29

Rexford Industrial Realty presently has a consensus target price of $51.09, indicating a potential upside of 21.63%. Sun Communities has a consensus target price of $139.08, indicating a potential upside of 11.12%. Given Rexford Industrial Realty’s higher probable upside, analysts plainly believe Rexford Industrial Realty is more favorable than Sun Communities.

Valuation & Earnings

This table compares Rexford Industrial Realty and Sun Communities”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rexford Industrial Realty	$797.83 million	11.71	$238.02 million	$1.23	34.15
Sun Communities	$3.22 billion	4.94	-$201.00 million	$1.86	67.29

Rexford Industrial Realty has higher earnings, but lower revenue than Sun Communities. Rexford Industrial Realty is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rexford Industrial Realty and Sun Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rexford Industrial Realty	30.40%	3.35%	2.29%
Sun Communities	7.46%	3.21%	1.40%

Dividends

Rexford Industrial Realty pays an annual dividend of $1.67 per share and has a dividend yield of 4.0%. Sun Communities pays an annual dividend of $3.76 per share and has a dividend yield of 3.0%. Rexford Industrial Realty pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sun Communities pays out 202.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Rexford Industrial Realty has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

99.5% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 99.6% of Sun Communities shares are held by institutional investors. 1.2% of Rexford Industrial Realty shares are held by insiders. Comparatively, 1.9% of Sun Communities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Rexford Industrial Realty beats Sun Communities on 9 of the 16 factors compared between the two stocks.

About Rexford Industrial Realty

Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand with lowest-supply major market in the nation. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. Rexford Industrial's high-quality, irreplaceable portfolio comprises 371 properties with approximately 45.0 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member.

About Sun Communities

Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.