SL Green Realty (NYSE:SLG) and American Homes 4 Rent (NYSE:AMH) Critical Survey

SL Green Realty (NYSE:SLG – Get Rating) and American Homes 4 Rent (NYSE:AMH – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SL Green Realty	-9.44%	-1.62%	-0.67%
American Homes 4 Rent	18.33%	4.00%	2.39%

Earnings & Valuation

This table compares SL Green Realty and American Homes 4 Rent’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SL Green Realty	$826.74 million	1.84	-$71.63 million	($1.49)	-15.82
American Homes 4 Rent	$1.49 billion	7.28	$273.14 million	$0.71	42.27

American Homes 4 Rent has higher revenue and earnings than SL Green Realty. SL Green Realty 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 and Insider Ownership

82.0% of SL Green Realty shares are owned by institutional investors. Comparatively, 84.3% of American Homes 4 Rent shares are owned by institutional investors. 5.2% of SL Green Realty shares are owned by insiders. Comparatively, 6.0% of American Homes 4 Rent shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

SL Green Realty pays an annual dividend of $3.25 per share and has a dividend yield of 13.8%. American Homes 4 Rent pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. SL Green Realty pays out -218.1% of its earnings in the form of a dividend. American Homes 4 Rent pays out 123.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Homes 4 Rent has raised its dividend for 3 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for SL Green Realty and American Homes 4 Rent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SL Green Realty	2	10	3	0	2.07
American Homes 4 Rent	0	7	9	0	2.56

SL Green Realty presently has a consensus price target of $46.31, indicating a potential upside of 96.49%. American Homes 4 Rent has a consensus price target of $37.09, indicating a potential upside of 23.59%. Given SL Green Realty’s higher possible upside, equities analysts clearly believe SL Green Realty is more favorable than American Homes 4 Rent.

Risk and Volatility

SL Green Realty has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Summary

American Homes 4 Rent beats SL Green Realty on 12 of the 16 factors compared between the two stocks.

About SL Green Realty

(Get Rating)

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.

About American Homes 4 Rent

(Get Rating)

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.