Independence Realty Trust (NYSE:IRT) and Centerspace (NYSE:CSR) Head-To-Head Analysis

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

Volatility and Risk

Independence Realty Trust has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	9.19%	1.75%	1.02%
Centerspace	35.40%	10.82%	4.89%

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.6%. Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.1%. Independence Realty Trust pays out 276.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out 244.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust has raised its dividend for 3 consecutive years and Centerspace has raised its dividend for 2 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Independence Realty Trust and Centerspace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	4	8	1	2.77
Centerspace	0	8	2	0	2.20

Independence Realty Trust presently has a consensus price target of $19.39, suggesting a potential upside of 23.82%. Centerspace has a consensus price target of $62.50, suggesting a potential upside of 3.52%. Given Independence Realty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Independence Realty Trust is more favorable than Centerspace.

Earnings and Valuation

This table compares Independence Realty Trust and Centerspace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$671.80 million	5.49	$56.56 million	$0.26	60.23
Centerspace	$273.66 million	3.71	$17.59 million	$1.26	47.92

Independence Realty Trust has higher revenue and earnings than Centerspace. Centerspace 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.

Insider and Institutional Ownership

88.2% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 79.0% of Centerspace shares are owned by institutional investors. 0.7% of Independence Realty Trust shares are owned by company insiders. Comparatively, 0.5% of Centerspace shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Independence Realty Trust beats Centerspace on 12 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 Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.