Contrasting Invitation Home (NYSE:INVH) & Office Properties Income Trust (NASDAQ:OPI)

Invitation Home (NYSE:INVH) and Office Properties Income Trust (NASDAQ:OPI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility & Risk

Invitation Home has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.

Earnings and Valuation

This table compares Invitation Home and Office Properties Income Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.07	$453.92 million	$0.88	34.33
Office Properties Income Trust	$501.98 million	0.03	-$136.11 million	($4.90)	-0.05

Invitation Home has higher revenue and earnings than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than Invitation Home, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Invitation Home and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	20.36%	5.56%	2.88%
Office Properties Income Trust	-62.99%	-25.56%	-8.02%

Institutional & Insider Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by insiders. Comparatively, 1.8% of Office Properties Income Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.8%. Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 17.7%. Invitation Home pays out 131.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Office Properties Income Trust pays out -0.8% of its earnings in the form of a dividend. Invitation Home has raised its dividend for 1 consecutive years. Office Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Invitation Home and Office Properties Income Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	8	0	2.47
Office Properties Income Trust	0	0	0	0	0.00

Invitation Home presently has a consensus target price of $36.85, indicating a potential upside of 21.99%. Given Invitation Home’s stronger consensus rating and higher possible upside, equities analysts clearly believe Invitation Home is more favorable than Office Properties Income Trust.

Summary

Invitation Home beats Office Properties Income Trust on 13 of the 17 factors compared between the two stocks.

About Invitation Home

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.