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

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations 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 currently has a consensus target price of $51.09, suggesting a potential upside of 21.62%. Sun Communities has a consensus target price of $139.08, suggesting a potential upside of 11.12%. Given Rexford Industrial Realty’s higher possible upside, equities research analysts plainly believe Rexford Industrial Realty is more favorable than Sun Communities.

Valuation and Earnings

This table compares Rexford Industrial Realty and Sun Communities”s top-line 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.

Risk & Volatility

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

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.

Summary

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

About Rexford Industrial Realty

(Get Free Report)

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

(Get Free Report)

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.

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