Comparing Sun Communities (NYSE:SUI) and Howard Hughes (NYSE:HHH)

Sun Communities (NYSE:SUI) and Howard Hughes (NYSE:HHH) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Sun Communities and Howard Hughes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sun Communities	$3.22 billion	5.10	-$201.00 million	$1.86	69.34
Howard Hughes	$1.20 billion	3.61	-$550.95 million	$1.51	57.05

Sun Communities has higher revenue and earnings than Howard Hughes. Howard Hughes 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 Sun Communities and Howard Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sun Communities	7.46%	3.21%	1.40%
Howard Hughes	6.57%	3.38%	1.03%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sun Communities and Howard Hughes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sun Communities	1	8	5	0	2.29
Howard Hughes	0	0	2	0	3.00

Sun Communities currently has a consensus target price of $139.08, indicating a potential upside of 7.83%. Howard Hughes has a consensus target price of $82.00, indicating a potential downside of 4.81%. Given Sun Communities’ higher probable upside, analysts clearly believe Sun Communities is more favorable than Howard Hughes.

Institutional & Insider Ownership

99.6% of Sun Communities shares are held by institutional investors. Comparatively, 93.8% of Howard Hughes shares are held by institutional investors. 1.9% of Sun Communities shares are held by insiders. Comparatively, 33.0% of Howard Hughes shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Sun Communities has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Summary

Sun Communities beats Howard Hughes on 10 of the 14 factors compared between the two stocks.

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.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.