Sun Communities (SUI) versus Independence Realty Trust (IRT) Financial Contrast
Sun Communities (NYSE: SUI) and Independence Realty Trust (NYSE:IRT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Risk & Volatility
Sun Communities has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
This table compares Sun Communities and Independence Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Realty Trust||-10.28%||-3.22%||-1.22%|
Insider and Institutional Ownership
89.2% of Sun Communities shares are held by institutional investors. Comparatively, 71.8% of Independence Realty Trust shares are held by institutional investors. 4.2% of Sun Communities shares are held by company insiders. Comparatively, 0.6% of Independence Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and price targets for Sun Communities and Independence Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Realty Trust||0||0||5||0||3.00|
Sun Communities currently has a consensus price target of $87.80, suggesting a potential downside of 2.14%. Independence Realty Trust has a consensus price target of $10.31, suggesting a potential upside of 3.64%. Given Independence Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Independence Realty Trust is more favorable than Sun Communities.
Earnings and Valuation
This table compares Sun Communities and Independence Realty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sun Communities||$936.86 million||7.57||$443.91 million||$0.70||128.17|
|Independence Realty Trust||N/A||N/A||N/A||($0.23)||-43.26|
Sun Communities has higher revenue and earnings than Independence Realty Trust. Independence Realty Trust is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.
Sun Communities pays an annual dividend of $2.68 per share and has a dividend yield of 3.0%. Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.2%. Sun Communities pays out 382.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust pays out -313.0% of its earnings in the form of a dividend. Independence Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Sun Communities beats Independence Realty Trust on 7 of the 13 factors compared between the two stocks.
About Sun Communities
Sun Communities, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is a fully integrated real estate company, which, together with its affiliates and predecessors, has been in the business of acquiring, operating, developing, and expanding manufactured housing (MH) and recreational vehicle (RV). As of December 31, 2016, it owned and operated or had an interest in a portfolio of properties located throughout the United States and Ontario, Canada, including 226 MH communities, 87 RV communities, and 28 properties containing both MH and RV sites. The Company operates through two segments: Real Property Operations and Home Sales and Rentals. The Real Property Operations segment owns, operates, or has an interest in a portfolio, and develops MH communities and RV communities throughout the United States and is in the business of acquiring, operating, and expanding MH and RV communities.
About Independence Realty Trust
Independence Realty Trust, Inc. is an internally-managed real estate investment trust (REIT). The Company is engaged in the business of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of real estate assets. The Company owns apartment properties in geographic non-gateway markets. As of July 5, 2017, the Company owns and operates 47 multifamily apartment properties, totaling 13,198 units. Its properties include Copper Mill, Crestmont, Heritage Trace, Runaway Bay, Berkshire Square, The Crossings, Reserve at Eagle Ridge, Windrush, Heritage Park, Raindance, Augusta, Invitational, Carrington Park, Walnut Hill, Lenoxplace, Bennington Pond, Jamestown, Meadows, Oxmoor, Bayview Club, Arbors River Oaks, Fox Trails, Bridge Pointe, The Aventine Greenville and Westmont Commons.
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