Education Realty Trust (EDR) and Camden Property Trust (CPT) Critical Analysis

Education Realty Trust (NYSE: EDR) and Camden Property Trust (NYSE:CPT) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Education Realty Trust has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Education Realty Trust and Camden Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Education Realty Trust 11.33% 2.01% 1.32%
Camden Property Trust 16.81% 4.71% 2.50%

Insider and Institutional Ownership

97.2% of Camden Property Trust shares are held by institutional investors. 0.5% of Education Realty Trust shares are held by insiders. Comparatively, 4.7% of Camden Property Trust shares are held by 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Education Realty Trust and Camden Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Education Realty Trust 1 5 6 0 2.42
Camden Property Trust 0 6 8 0 2.57

Education Realty Trust currently has a consensus target price of $41.60, indicating a potential upside of 17.35%. Camden Property Trust has a consensus target price of $93.00, indicating a potential upside of 1.71%. Given Education Realty Trust’s higher possible upside, research analysts clearly believe Education Realty Trust is more favorable than Camden Property Trust.

Valuation and Earnings

This table compares Education Realty Trust and Camden Property Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Education Realty Trust $288.97 million 9.29 $44.92 million $0.46 77.07
Camden Property Trust $876.45 million 9.67 $819.82 million $1.64 55.76

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

Dividends

Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 4.4%. Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.3%. Education Realty Trust pays out 339.1% 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 182.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Education Realty Trust has raised its dividend for 6 consecutive years and Camden Property Trust has raised its dividend for 6 consecutive years.

Summary

Camden Property Trust beats Education Realty Trust on 13 of the 16 factors compared between the two stocks.

About Education Realty Trust

Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.

About Camden Property Trust

Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.

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