Head-To-Head Comparison: Invitation Home (NYSE:INVH) vs. Centerspace (NYSE:CSR)

Invitation Home (NYSE:INVH) and Centerspace (NYSE:CSR) 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, dividends, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 79.0% of Centerspace shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by company insiders. Comparatively, 0.4% of Centerspace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Invitation Home has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Invitation Home and Centerspace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	9	0	2.50
Centerspace	0	4	4	1	2.67

Invitation Home presently has a consensus price target of $37.97, indicating a potential upside of 17.29%. Centerspace has a consensus price target of $71.56, indicating a potential upside of 19.11%. Given Centerspace’s stronger consensus rating and higher probable upside, analysts clearly believe Centerspace is more favorable than Invitation Home.

Earnings & Valuation

This table compares Invitation Home and Centerspace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.58	$453.92 million	$0.77	42.05
Centerspace	$260.98 million	3.85	-$10.69 million	($1.12)	-53.64

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

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.1%. Invitation Home pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out -275.0% of its earnings in the form of a dividend. Invitation Home has increased its dividend for 1 consecutive years and Centerspace has increased its dividend for 2 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Invitation Home and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	18.01%	4.82%	2.51%
Centerspace	-4.23%	-1.30%	-0.59%

Summary

Invitation Home beats Centerspace on 11 of the 18 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 Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.