Orion Office REIT (NYSE:ONL – Get Free Report) and Apartment Investment and Management (NYSE:AIV – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Orion Office REIT and Apartment Investment and Management, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Office REIT | 0 | 1 | 0 | 0 | 2.00 |
| Apartment Investment and Management | 0 | 0 | 0 | 0 | 0.00 |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Office REIT | $170.25 million | 1.35 | -$57.30 million | ($1.54) | -2.68 |
| Apartment Investment and Management | $208.68 million | 6.16 | -$166.20 million | ($0.74) | -12.24 |
Orion Office REIT has higher earnings, but lower revenue than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Orion Office REIT and Apartment Investment and Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Office REIT | -50.76% | -10.28% | -6.26% |
| Apartment Investment and Management | -119.76% | -68.04% | -11.72% |
Volatility and Risk
Orion Office REIT has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Insider & Institutional Ownership
79.9% of Orion Office REIT shares are held by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are held by institutional investors. 0.2% of Orion Office REIT shares are held by company insiders. Comparatively, 3.0% of Apartment Investment and Management shares are held by company 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
Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 9.7%. Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 11.1%. Orion Office REIT pays out -26.0% of its earnings in the form of a dividend. Apartment Investment and Management pays out -136.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Apartment Investment and Management beats Orion Office REIT on 8 of the 14 factors compared between the two stocks.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
About Apartment Investment and Management
Apartment Investment & Management Co. operates as a real estate investment trust that engages in the acquisition, ownership, management and redevelopment of apartment properties. The company was founded in 1975 and is headquartered in Denver, CO.
Receive News & Ratings for Orion Office REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Orion Office REIT and related companies with MarketBeat.com's FREE daily email newsletter.
