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

Institutional and Insider Ownership

73.6% of Silver Bay Realty Trust Corp shares are held by institutional investors. 0.5% of Education Realty Trust shares are held by insiders. Comparatively, 7.3% of Silver Bay Realty Trust Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Education Realty Trust and Silver Bay Realty Trust Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Education Realty Trust 10.58% 1.83% 1.25%
Silver Bay Realty Trust Corp -5.71% -1.42% -0.61%

Analyst Ratings

This is a summary of current recommendations and price targets for Education Realty Trust and Silver Bay Realty Trust Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Education Realty Trust 1 7 5 0 2.31
Silver Bay Realty Trust Corp 0 4 0 0 2.00

Education Realty Trust currently has a consensus target price of $45.22, suggesting a potential upside of 20.21%. Silver Bay Realty Trust Corp has a consensus target price of $19.83, suggesting a potential downside of 7.71%. Given Education Realty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Education Realty Trust is more favorable than Silver Bay Realty Trust Corp.

Volatility and Risk

Education Realty Trust has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Silver Bay Realty Trust Corp has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Education Realty Trust $310.48 million 8.87 $143.74 million $0.42 89.57
Silver Bay Realty Trust Corp N/A N/A N/A ($0.16) -134.31

Education Realty Trust has higher revenue and earnings than Silver Bay Realty Trust Corp. Silver Bay Realty Trust Corp 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 4.1%. Silver Bay Realty Trust Corp pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Education Realty Trust pays out 371.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust Corp pays out -325.0% of its earnings in the form of a dividend. Education Realty Trust has increased its dividend for 3 consecutive years and Silver Bay Realty Trust Corp has increased its dividend for 6 consecutive years.

Summary

Education Realty Trust beats Silver Bay Realty Trust Corp on 9 of the 14 factors compared between the two stocks.

Education Realty Trust Company Profile

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.

Silver Bay Realty Trust Corp Company Profile

Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.

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