Head to Head Analysis: Invesco Mortgage Capital (NYSE:IVR) & Equity LifeStyle Properties (NYSE:ELS)

Equity LifeStyle Properties (NYSE:ELS) and Invesco Mortgage Capital (NYSE:IVR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Equity LifeStyle Properties and Invesco Mortgage Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity LifeStyle Properties	23.97%	24.10%	6.44%
Invesco Mortgage Capital	30.67%	36.90%	3.50%

Earnings and Valuation

This table compares Equity LifeStyle Properties and Invesco Mortgage Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity LifeStyle Properties	$1.43 billion	8.88	$314.21 million	$1.94	34.33
Invesco Mortgage Capital	$103.09 million	4.85	-$15.86 million	$1.20	6.86

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

Institutional & Insider Ownership

97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 40.5% of Invesco Mortgage Capital shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by insiders. Comparatively, 0.2% of Invesco Mortgage Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Equity LifeStyle Properties has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Invesco Mortgage Capital has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equity LifeStyle Properties and Invesco Mortgage Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity LifeStyle Properties	0	6	4	1	2.55
Invesco Mortgage Capital	0	1	1	0	2.50

Equity LifeStyle Properties presently has a consensus target price of $72.50, indicating a potential upside of 8.86%. Invesco Mortgage Capital has a consensus target price of $10.00, indicating a potential upside of 21.51%. Given Invesco Mortgage Capital’s higher possible upside, analysts plainly believe Invesco Mortgage Capital is more favorable than Equity LifeStyle Properties.

Dividends

Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.9%. Invesco Mortgage Capital pays an annual dividend of $1.60 per share and has a dividend yield of 19.4%. Equity LifeStyle Properties pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Equity LifeStyle Properties has increased its dividend for 20 consecutive years.

Summary

Equity LifeStyle Properties beats Invesco Mortgage Capital on 13 of the 18 factors compared between the two stocks.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 29, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,465 sites.

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.