Analyzing Apartment Investment and Management (NYSE:AIV) & CTO Realty Growth (NYSE:CTO)

CTO Realty Growth (NYSE:CTO) and Apartment Investment and Management (NYSE:AIV) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Dividends

CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 8.9%. Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 13.5%. CTO Realty Growth pays out -690.9% of its earnings in the form of a dividend. Apartment Investment and Management pays out -136.5% 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.

Volatility and Risk

CTO Realty Growth has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Valuation & Earnings

This table compares CTO Realty Growth and Apartment Investment and Management”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTO Realty Growth	$124.52 million	4.38	$5.53 million	($0.22)	-77.86
Apartment Investment and Management	$208.68 million	5.11	-$166.20 million	($0.74)	-10.14

CTO Realty Growth has higher earnings, but lower revenue than Apartment Investment and Management. CTO Realty Growth is trading at a lower price-to-earnings ratio than Apartment Investment and Management, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CTO Realty Growth and Apartment Investment and Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CTO Realty Growth	0	0	2	2	3.50
Apartment Investment and Management	0	0	0	0	0.00

CTO Realty Growth presently has a consensus target price of $22.00, indicating a potential upside of 28.43%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, research analysts clearly believe CTO Realty Growth is more favorable than Apartment Investment and Management.

Profitability

This table compares CTO Realty Growth and Apartment Investment and Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CTO Realty Growth	-1.58%	-0.38%	-0.18%
Apartment Investment and Management	-119.76%	-68.04%	-11.72%

Institutional & Insider Ownership

67.2% of CTO Realty Growth shares are owned by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are owned by institutional investors. 5.3% of CTO Realty Growth shares are owned by insiders. Comparatively, 3.0% of Apartment Investment and Management shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CTO Realty Growth beats Apartment Investment and Management on 11 of the 17 factors compared between the two stocks.

About CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.

About Apartment Investment and Management

Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.