Financial Analysis: Associated Estates Realty (AEC) vs. United Dominion Realty Trust (UDR)
Associated Estates Realty (NYSE: AEC) and United Dominion Realty Trust (NYSE:UDR) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Valuation and Earnings
This table compares Associated Estates Realty and United Dominion Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Associated Estates Realty||N/A||N/A||N/A||N/A||N/A|
|United Dominion Realty Trust||$979.22 million||10.77||$616.47 million||$1.10||35.85|
United Dominion Realty Trust has higher revenue and earnings than Associated Estates Realty.
This table compares Associated Estates Realty and United Dominion Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Associated Estates Realty||60.04%||18.10%||7.71%|
|United Dominion Realty Trust||30.74%||10.40%||3.97%|
Insider & Institutional Ownership
97.7% of United Dominion Realty Trust shares are held by institutional investors. 3.1% of United Dominion Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. Associated Estates Realty does not pay a dividend. United Dominion Realty Trust pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Associated Estates Realty has raised its dividend for 5 consecutive years and United Dominion Realty Trust has raised its dividend for 7 consecutive years.
This is a summary of recent ratings and price targets for Associated Estates Realty and United Dominion Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Associated Estates Realty||0||0||0||0||N/A|
|United Dominion Realty Trust||2||9||3||0||2.07|
United Dominion Realty Trust has a consensus target price of $38.56, suggesting a potential downside of 2.22%. Given United Dominion Realty Trust’s higher possible upside, analysts clearly believe United Dominion Realty Trust is more favorable than Associated Estates Realty.
United Dominion Realty Trust beats Associated Estates Realty on 7 of the 11 factors compared between the two stocks.
Associated Estates Realty Company Profile
Associated Estates Realty Corporation is a self-administered and self-managed equity real estate investment trust (REIT). The Company is engaged primarily in the ownership and operation of multifamily apartment units. It specializes in multifamily ownership, operation, acquisition, development, disposition and property management activities. Its operating portfolio consists of approximately 49 apartment communities containing around 12,734 units in eight states that are owned, either directly or indirectly, through its subsidiaries. It also owns a commercial building in Los Angeles, California containing approximately 78,800 total square feet of office and commercial space. The Company also earns revenue from rental payments from the leasing of apartment units. It owns a taxable REIT subsidiary, which performs construction management services in connection with the development of multifamily properties that it owns, including consolidated and unconsolidated joint ventures.
United Dominion Realty Trust Company Profile
UDR, Inc. is a self-administered real estate investment trust. The Company owns, operates, acquires, renovates, develops, redevelops, disposes of and manages multifamily apartment communities generally located in various markets across the United States. The Company’s segments are Same-Store Communities and Non-Mature Communities/Other. As of December 31, 2016, the Company’s consolidated real estate portfolio included 127 communities located in 18 markets, with a total of 39,454 completed apartment homes. As of December 31, 2016, the Company also had an ownership interest in 27 communities containing 6,849 apartment homes through unconsolidated joint ventures or partnerships. As of December 31, 2016, the Company’s properties were in various locations, such as Orange County, San Francisco and Los Angeles in California; Seattle, Washington; Richmond, Virginia; Baltimore, Maryland; Orlando and Tampa in Florida; Nashville, Tennessee, and Dallas and Austin in Texas.
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