Financial Analysis: Investors Real Estate Trust (IRET) vs. The Competition

Investors Real Estate Trust (NYSE: IRET) is one of 230 publicly-traded companies in the “Real estate investment trusts” industry, but how does it weigh in compared to its competitors? We will compare Investors Real Estate Trust to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Profitability

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This table compares Investors Real Estate Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investors Real Estate Trust 82.22% -3.73% -1.33%
Investors Real Estate Trust Competitors 23.75% 7.13% 2.68%

Institutional & Insider Ownership

57.6% of Investors Real Estate Trust shares are held by institutional investors. Comparatively, 73.1% of shares of all “Real estate investment trusts” companies are held by institutional investors. 1.0% of Investors Real Estate Trust shares are held by insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Investors Real Estate Trust and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Investors Real Estate Trust $205.74 million $43.34 million 11.43
Investors Real Estate Trust Competitors $794.88 million $176.08 million 14.00

Investors Real Estate Trust’s competitors have higher revenue and earnings than Investors Real Estate Trust. Investors Real Estate Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Investors Real Estate Trust has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Investors Real Estate Trust’s competitors have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Dividends

Investors Real Estate Trust pays an annual dividend of $0.28 per share and has a dividend yield of 5.2%. Investors Real Estate Trust pays out 59.6% of its earnings in the form of a dividend. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.8% and pay out 71.8% of their earnings in the form of a dividend. Investors Real Estate Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and price targets for Investors Real Estate Trust and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investors Real Estate Trust 0 1 0 0 2.00
Investors Real Estate Trust Competitors 1503 7782 8419 218 2.41

Investors Real Estate Trust presently has a consensus target price of $6.00, suggesting a potential upside of 11.73%. As a group, “Real estate investment trusts” companies have a potential upside of 12.74%. Given Investors Real Estate Trust’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Investors Real Estate Trust has less favorable growth aspects than its competitors.

Summary

Investors Real Estate Trust competitors beat Investors Real Estate Trust on 11 of the 15 factors compared.

About Investors Real Estate Trust

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of multifamily apartment communities. As of January 31, 2018, IRET owned interests in 89 multifamily properties consisting of 13,786 apartment homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET PRC, respectively).

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