UMH Properties (NYSE: UMH) and Independence Realty Trust (NYSE:IRT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
UMH Properties 1.02% 0.76% 0.15%
Independence Realty Trust -10.28% -3.22% -1.22%

Analyst Ratings

This is a summary of current recommendations and price targets for UMH Properties and Independence Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UMH Properties 0 0 4 0 3.00
Independence Realty Trust 0 0 5 0 3.00

UMH Properties presently has a consensus price target of $18.88, indicating a potential upside of 17.75%. Independence Realty Trust has a consensus price target of $10.31, indicating a potential upside of 3.23%. Given UMH Properties’ higher possible upside, analysts plainly believe UMH Properties is more favorable than Independence Realty Trust.

Risk and Volatility

UMH Properties has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

54.0% of UMH Properties shares are held by institutional investors. Comparatively, 74.8% of Independence Realty Trust shares are held by institutional investors. 11.6% of UMH Properties shares are held by insiders. Comparatively, 0.6% of Independence Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 4.5%. Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.2%. UMH Properties pays out -799.9% of its earnings in the form of a dividend. Independence Realty Trust pays out -313.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares UMH Properties and Independence Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UMH Properties $105.77 million 5.14 $41.90 million ($0.09) -178.09
Independence Realty Trust $155.10 million 4.45 $30.95 million ($0.23) -43.43

UMH Properties has higher revenue, but lower earnings than Independence Realty Trust. UMH Properties 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.

Summary

UMH Properties beats Independence Realty Trust on 10 of the 15 factors compared between the two stocks.

UMH Properties Company Profile

UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of May 31, 2017, the Company owned 107 manufactured home communities consisting of approximately 19,400 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.

Independence Realty Trust Company Profile

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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