Comparing COPT Defense Properties (NYSE:CDP) & Sun Communities (NYSE:SUI)

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

Dividends

COPT Defense Properties pays an annual dividend of $1.18 per share and has a dividend yield of 4.8%. Sun Communities pays an annual dividend of $3.76 per share and has a dividend yield of 3.2%. COPT Defense Properties pays out -109.3% of its earnings in the form of a dividend. Sun Communities pays out 324.1% 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 has increased its dividend for 8 consecutive years. COPT Defense Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares COPT Defense Properties and Sun Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
COPT Defense Properties	-16.83%	-7.53%	-2.82%
Sun Communities	4.46%	1.87%	0.84%

Analyst Recommendations

This is a summary of current ratings and recommmendations for COPT Defense Properties and Sun Communities, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
COPT Defense Properties	0	3	4	0	2.57
Sun Communities	0	5	6	0	2.55

COPT Defense Properties presently has a consensus price target of $27.00, indicating a potential upside of 9.62%. Sun Communities has a consensus price target of $138.92, indicating a potential upside of 19.02%. Given Sun Communities’ higher probable upside, analysts clearly believe Sun Communities is more favorable than COPT Defense Properties.

Volatility & Risk

COPT Defense Properties has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Sun Communities has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

99.6% of Sun Communities shares are owned by institutional investors. 1.1% of COPT Defense Properties 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, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares COPT Defense Properties and Sun Communities’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COPT Defense Properties	$684.98 million	4.05	-$73.47 million	($1.08)	-22.81
Sun Communities	$3.22 billion	4.51	-$201.00 million	$1.16	100.62

COPT Defense Properties has higher earnings, but lower revenue than Sun Communities. COPT Defense Properties is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.

Summary

Sun Communities beats COPT Defense Properties on 12 of the 17 factors compared between the two stocks.

About COPT Defense Properties

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (USG) defense installations and missions (referred to as its Defense/IT Portfolio). The Company's tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of December 31, 2023, the Company's Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% leased.

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.