Associated Estates Realty (NYSE: AEC) and Independence Realty Trust (NYSE:IRT) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.1%. Associated Estates Realty does not pay a dividend. Independence Realty Trust pays out -313.0% of its earnings in the form of a dividend. Independence Realty Trust has increased its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Associated Estates Realty and Independence Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Associated Estates Realty||N/A||N/A||N/A||N/A||N/A|
|Independence Realty Trust||N/A||N/A||N/A||($0.23)||-44.13|
Insider and Institutional Ownership
61.9% of Independence Realty Trust shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Associated Estates Realty and Independence Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Associated Estates Realty||0||0||0||0||N/A|
|Independence Realty Trust||0||0||5||0||3.00|
Independence Realty Trust has a consensus target price of $10.80, indicating a potential upside of 6.40%. Given Independence Realty Trust’s higher probable upside, analysts clearly believe Independence Realty Trust is more favorable than Associated Estates Realty.
This table compares Associated Estates Realty and Independence Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Associated Estates Realty||60.04%||18.10%||7.71%|
|Independence Realty Trust||-10.28%||-3.22%||-1.22%|
Independence Realty Trust beats Associated Estates Realty on 7 of the 10 factors compared between the two stocks.
Associated Estates Realty Company Profile
Associated Estates Realty Corporation is a self-administered and self-managed equity real estate investment trust (REIT). The Company is engaged primarily in the ownership and operation of multifamily apartment units. It specializes in multifamily ownership, operation, acquisition, development, disposition and property management activities. Its operating portfolio consists of approximately 49 apartment communities containing around 12,734 units in eight states that are owned, either directly or indirectly, through its subsidiaries. It also owns a commercial building in Los Angeles, California containing approximately 78,800 total square feet of office and commercial space. The Company also earns revenue from rental payments from the leasing of apartment units. It owns a taxable REIT subsidiary, which performs construction management services in connection with the development of multifamily properties that it owns, including consolidated and unconsolidated joint ventures.
Independence Realty Trust Company Profile
Independence Realty Trust, Inc. is an internally-managed real estate investment trust (REIT). The Company is engaged in the business of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of real estate assets. The Company owns apartment properties in geographic non-gateway markets. As of September 26, 2017, the Company owns and operates 55 multifamily apartment properties, totaling 15,165 units. Its properties include Copper Mill, Crestmont, Heritage Trace, Runaway Bay, Berkshire Square, The Crossings, Reserve at Eagle Ridge, Windrush, Heritage Park, Raindance, Augusta, Invitational, Carrington Park, Walnut Hill, Lenoxplace, Bennington Pond, Jamestown, Meadows, Oxmoor, Bayview Club, Arbors River Oaks, Fox Trails, Bridge Pointe, The Aventine Greenville and Westmont Commons.
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