Critical Comparison: First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) and Apartment Investment and Management (NYSE:AIV)

Apartment Investment and Management (NYSE:AIV) and First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

83.3% of Apartment Investment and Management shares are held by institutional investors. 3.0% of Apartment Investment and Management shares are held by insiders. Comparatively, 12.0% of First Real Estate Investment Trust of New Jersey shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Apartment Investment and Management and First Real Estate Investment Trust of New Jersey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	0	0	0	0	N/A
First Real Estate Investment Trust of New Jersey	0	0	0	0	N/A

Profitability

This table compares Apartment Investment and Management and First Real Estate Investment Trust of New Jersey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	-113.14%	-51.94%	-10.54%
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A

Valuation and Earnings

This table compares Apartment Investment and Management and First Real Estate Investment Trust of New Jersey”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Investment and Management	$198.40 million	6.77	-$166.20 million	($1.18)	-7.86
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	10.15

First Real Estate Investment Trust of New Jersey has lower revenue, but higher earnings than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than First Real Estate Investment Trust of New Jersey, indicating that it is currently the more affordable of the two stocks.

Dividends

Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 10.9%. First Real Estate Investment Trust of New Jersey pays an annual dividend of $1.56 per share and has a dividend yield of 9.1%. Apartment Investment and Management pays out -85.6% of its earnings in the form of a dividend. First Real Estate Investment Trust of New Jersey pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

First Real Estate Investment Trust of New Jersey beats Apartment Investment and Management on 6 of the 10 factors compared between the two stocks.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco’s mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.

About First Real Estate Investment Trust of New Jersey

First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey and New York, with the largest concentration in northern New Jersey.