Head to Head Review: Blackstone Mortgage Trust (NYSE:BXMT) & American Campus Communities (NYSE:ACC)

American Campus Communities (NYSE:ACC) and Blackstone Mortgage Trust (NYSE:BXMT) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

92.9% of American Campus Communities shares are owned by institutional investors. Comparatively, 58.7% of Blackstone Mortgage Trust shares are owned by institutional investors. 0.8% of American Campus Communities shares are owned by company insiders. Comparatively, 1.0% of Blackstone Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Campus Communities and Blackstone Mortgage Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Campus Communities 0 2 4 0 2.67
Blackstone Mortgage Trust 0 5 0 0 2.00

American Campus Communities presently has a consensus target price of $52.00, suggesting a potential upside of 13.09%. Blackstone Mortgage Trust has a consensus target price of $36.00, suggesting a potential downside of 3.74%. Given American Campus Communities’ stronger consensus rating and higher possible upside, equities analysts clearly believe American Campus Communities is more favorable than Blackstone Mortgage Trust.

Volatility and Risk

American Campus Communities has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Dividends

American Campus Communities pays an annual dividend of $1.88 per share and has a dividend yield of 4.1%. Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 6.6%. American Campus Communities pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackstone Mortgage Trust pays out 93.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Campus Communities has raised its dividend for 6 consecutive years.

Profitability

This table compares American Campus Communities and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Campus Communities 11.55% 2.73% 1.29%
Blackstone Mortgage Trust 39.30% 8.70% 2.12%

Earnings & Valuation

This table compares American Campus Communities and Blackstone Mortgage Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Campus Communities $880.81 million 7.17 $117.10 million $2.31 19.90
Blackstone Mortgage Trust $396.48 million 12.67 $285.07 million $2.65 14.11

Blackstone Mortgage Trust has lower revenue, but higher earnings than American Campus Communities. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than American Campus Communities, indicating that it is currently the more affordable of the two stocks.

Summary

Blackstone Mortgage Trust beats American Campus Communities on 9 of the 17 factors compared between the two stocks.

About American Campus Communities

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management and operational management of student housing properties. As of December 31, 2018, American Campus Communities owned 170 student housing properties containing approximately 109,100 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 204 properties with approximately 133,900 beds.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by properties in North America, Europe, and Australia. The company operates as a real estate investment trust for federal income tax purposes. It generally would not be subject to U.S. federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was founded in 1966 and is headquartered in New York, New York.

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