Camden Property Trust (NYSE:CPT) and Invesco Mortgage Capital (NYSE:IVR) Head to Head Review

Invesco Mortgage Capital (NYSE:IVR) and Camden Property Trust (NYSE:CPT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Insider and Institutional Ownership

40.5% of Invesco Mortgage Capital shares are owned by institutional investors. Comparatively, 97.2% of Camden Property Trust shares are owned by institutional investors. 0.2% of Invesco Mortgage Capital shares are owned by company insiders. Comparatively, 1.8% of Camden Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Invesco Mortgage Capital has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Invesco Mortgage Capital and Camden Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Mortgage Capital	0	2	1	0	2.33
Camden Property Trust	0	15	4	0	2.21

Invesco Mortgage Capital presently has a consensus target price of $9.00, indicating a potential upside of 9.42%. Camden Property Trust has a consensus target price of $122.50, indicating a potential upside of 2.18%. Given Invesco Mortgage Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Invesco Mortgage Capital is more favorable than Camden Property Trust.

Profitability

This table compares Invesco Mortgage Capital and Camden Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco Mortgage Capital	30.67%	36.90%	3.50%
Camden Property Trust	22.32%	6.97%	3.78%

Dividends

Invesco Mortgage Capital pays an annual dividend of $1.60 per share and has a dividend yield of 19.5%. Camden Property Trust pays an annual dividend of $4.12 per share and has a dividend yield of 3.4%. Invesco Mortgage Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Invesco Mortgage Capital and Camden Property Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invesco Mortgage Capital	$277.93 million	1.80	-$15.86 million	$1.20	6.85
Camden Property Trust	$1.54 billion	8.29	$403.31 million	$3.16	37.94

Camden Property Trust has higher revenue and earnings than Invesco Mortgage Capital. Invesco Mortgage Capital is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Camden Property Trust beats Invesco Mortgage Capital on 10 of the 16 factors compared between the two stocks.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that invests, finances, and manages mortgage-backed securities and other mortgage-related assets in the United States. It invests in residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) that are guaranteed by a U.S. government agency or federally chartered corporation; RMBS and CMBS that are not issued or guaranteed by the United States government agency or federally chartered corporation; the United States treasury securities; real estate-related financing arrangements; to-be-announced securities forward contracts to purchase RMBS; and commercial mortgage loans. It has elected to be taxed as a REIT and would be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

About Camden Property Trust

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For by FORTUNE magazine for 17 consecutive years, most recently ranking #24.