Comparing BRT Apartments (NYSE:BRT) & Independence Realty Trust (NYSE:IRT)

Independence Realty Trust (NYSE:IRT) and BRT Apartments (NYSE:BRT) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Risk and Volatility

Independence Realty Trust has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Independence Realty Trust and BRT Apartments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	6.52%	1.22%	0.72%
BRT Apartments	-13.22%	-7.46%	-1.84%

Valuation & Earnings

This table compares Independence Realty Trust and BRT Apartments”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$657.70 million	5.30	$56.56 million	$0.18	82.09
BRT Apartments	$97.89 million	2.55	-$11.95 million	($0.70)	-18.95

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

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.9%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 7.5%. Independence Realty Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRT Apartments pays out -142.9% of its earnings in the form of a dividend. Independence Realty Trust has increased its dividend for 3 consecutive years. BRT Apartments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

88.2% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 29.1% of BRT Apartments shares are owned by institutional investors. 0.7% of Independence Realty Trust shares are owned by insiders. Comparatively, 42.2% of BRT Apartments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Independence Realty Trust and BRT Apartments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	4	8	1	2.77
BRT Apartments	1	1	2	0	2.25

Independence Realty Trust currently has a consensus target price of $19.39, indicating a potential upside of 31.22%. BRT Apartments has a consensus target price of $20.00, indicating a potential upside of 50.74%. Given BRT Apartments’ higher possible upside, analysts clearly believe BRT Apartments is more favorable than Independence Realty Trust.

Summary

Independence Realty Trust beats BRT Apartments on 14 of the 18 factors compared between the two stocks.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.