Reviewing Gadsden Properties (OTCMKTS:GADS) and American Homes 4 Rent (NYSE:AMH)

Gadsden Properties (OTCMKTS:GADS) and American Homes 4 Rent (NYSE:AMH) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

91.9% of American Homes 4 Rent shares are owned by institutional investors. 5.0% of Gadsden Properties 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Gadsden Properties has a beta of -7.43, meaning that its stock price is 843% less volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Gadsden Properties and American Homes 4 Rent, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gadsden Properties	0	0	0	0	0.00
American Homes 4 Rent	0	5	6	0	2.55

American Homes 4 Rent has a consensus price target of $40.09, indicating a potential upside of 20.36%. Given American Homes 4 Rent’s stronger consensus rating and higher probable upside, analysts plainly believe American Homes 4 Rent is more favorable than Gadsden Properties.

Profitability

This table compares Gadsden Properties and American Homes 4 Rent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gadsden Properties	N/A	N/A	N/A
American Homes 4 Rent	23.72%	5.60%	3.29%

Valuation & Earnings

This table compares Gadsden Properties and American Homes 4 Rent”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gadsden Properties	N/A	N/A	N/A	N/A	N/A
American Homes 4 Rent	$1.73 billion	7.15	$412.43 million	$1.11	30.01

American Homes 4 Rent has higher revenue and earnings than Gadsden Properties.

Summary

American Homes 4 Rent beats Gadsden Properties on 10 of the 10 factors compared between the two stocks.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.

About American Homes 4 Rent

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.