Comparing AvalonBay Communities (NYSE:AVB) and Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF)

Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF) and AvalonBay Communities (NYSE:AVB) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Profitability

This table compares Dream Residential Real Estate Investment Trust and AvalonBay Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A
AvalonBay Communities	33.33%	8.58%	4.65%

Institutional and Insider Ownership

92.6% of AvalonBay Communities shares are owned by institutional investors. 0.5% of AvalonBay Communities shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Dream Residential Real Estate Investment Trust and AvalonBay Communities”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A	N/A	N/A
AvalonBay Communities	$3.04 billion	8.69	$1.05 billion	$6.12	30.25

AvalonBay Communities has higher revenue and earnings than Dream Residential Real Estate Investment Trust.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dream Residential Real Estate Investment Trust and AvalonBay Communities, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dream Residential Real Estate Investment Trust	0	1	0	0	2.00
AvalonBay Communities	0	15	3	0	2.17

AvalonBay Communities has a consensus target price of $196.87, indicating a potential upside of 6.35%. Given AvalonBay Communities’ stronger consensus rating and higher probable upside, analysts plainly believe AvalonBay Communities is more favorable than Dream Residential Real Estate Investment Trust.

Summary

AvalonBay Communities beats Dream Residential Real Estate Investment Trust on 9 of the 9 factors compared between the two stocks.

About Dream Residential Real Estate Investment Trust

Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States

About AvalonBay Communities

AvalonBay Communities, Inc. is a real estate investment trust, which engages in the development, acquisition, ownership, and operation of multifamily communities. It operates through the following segments: Same Store, Other Stabilized, and Development or Redevelopment. The Same Store segment refers to the operating communities that were owned and had stabilized occupancy. The Other Stabilized segment includes all other complete communities that have stabilized occupancy. The Development or Redevelopment segment consists of communities that are under construction. The company was founded by Gilbert M. Meyer in 1978 and is headquartered in Arlington, VA.