Hannon Armstrong Sustnbl Infrstr Cap (HASI) & Armada Hoffler Properties (AHH) Critical Analysis

Hannon Armstrong Sustnbl Infrstr Cap (NYSE: HASI) and Armada Hoffler Properties (NYSE:AHH) are both small-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hannon Armstrong Sustnbl Infrstr Cap and Armada Hoffler Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hannon Armstrong Sustnbl Infrstr Cap 0 1 7 0 2.88
Armada Hoffler Properties 0 3 4 0 2.57

Hannon Armstrong Sustnbl Infrstr Cap presently has a consensus price target of $26.29, suggesting a potential upside of 25.77%. Armada Hoffler Properties has a consensus price target of $14.75, suggesting a potential upside of 9.75%. Given Hannon Armstrong Sustnbl Infrstr Cap’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hannon Armstrong Sustnbl Infrstr Cap is more favorable than Armada Hoffler Properties.

Volatility and Risk

Hannon Armstrong Sustnbl Infrstr Cap has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Armada Hoffler Properties has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Dividends

Hannon Armstrong Sustnbl Infrstr Cap pays an annual dividend of $1.32 per share and has a dividend yield of 6.3%. Armada Hoffler Properties pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. Hannon Armstrong Sustnbl Infrstr Cap pays out 216.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Armada Hoffler Properties pays out 152.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustnbl Infrstr Cap has raised its dividend for 4 consecutive years and Armada Hoffler Properties has raised its dividend for 4 consecutive years.

Valuation and Earnings

This table compares Hannon Armstrong Sustnbl Infrstr Cap and Armada Hoffler Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hannon Armstrong Sustnbl Infrstr Cap $81.20 million 13.66 $14.65 million $0.61 34.26
Armada Hoffler Properties $302.77 million 1.99 $21.04 million $0.50 26.88

Armada Hoffler Properties has higher revenue and earnings than Hannon Armstrong Sustnbl Infrstr Cap. Armada Hoffler Properties is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustnbl Infrstr Cap, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

71.4% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by institutional investors. Comparatively, 80.9% of Armada Hoffler Properties shares are owned by institutional investors. 5.4% of Hannon Armstrong Sustnbl Infrstr Cap shares are owned by company insiders. Comparatively, 16.6% of Armada Hoffler Properties 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.

Profitability

This table compares Hannon Armstrong Sustnbl Infrstr Cap and Armada Hoffler Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hannon Armstrong Sustnbl Infrstr Cap 32.42% 8.61% 2.60%
Armada Hoffler Properties 8.42% 6.23% 2.50%

Summary

Hannon Armstrong Sustnbl Infrstr Cap beats Armada Hoffler Properties on 11 of the 16 factors compared between the two stocks.

Hannon Armstrong Sustnbl Infrstr Cap Company Profile

Hannon Armstrong Sustainable Infrastructure Capital, Inc. makes debt and equity investments in sustainable infrastructure, including energy efficiency and renewable energy. The Company focuses on providing preferred or senior level capital to sponsors and obligors for assets that generate long-term, recurring and predictable cash flows. The Company focuses its investment activities primarily on Energy Efficiency Projects, which include projects typically undertaken by energy service companies, which reduce a building’s or facility’s energy usage or cost by installing various building components, including heating, ventilation and air conditioning systems, lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems, and Renewable Energy Projects, which include projects that deploy cleaner energy sources, such as solar and wind to generate power production. It may also invest in other projects, such as water or communications infrastructure.

Armada Hoffler Properties Company Profile

Armada Hoffler Properties, Inc. is a real estate company. The Company is engaged in developing, building, owning and managing institutional-grade office, retail and multifamily properties in various markets throughout the Mid-Atlantic and Southeastern United States. In addition to the ownership of its operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners. It also provides general contracting services to third parties. Its construction and development experience includes mid- and high-rise office buildings, retail strip malls and retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution and manufacturing facilities, educational, medical and special purpose facilities, government projects, parking garages and mixed-use town centers.

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