Preferred Apartment Communities (APTS) vs. United Dominion Realty Trust (UDR) Head-To-Head Review
Preferred Apartment Communities (NASDAQ: APTS) and United Dominion Realty Trust (NYSE:UDR) are both financials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
This table compares Preferred Apartment Communities and United Dominion Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Preferred Apartment Communities||4.66%||-4.73%||0.51%|
|United Dominion Realty Trust||30.74%||10.40%||3.97%|
This is a summary of recent ratings and price targets for Preferred Apartment Communities and United Dominion Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Preferred Apartment Communities||0||1||3||0||2.75|
|United Dominion Realty Trust||2||9||4||0||2.13|
Preferred Apartment Communities currently has a consensus target price of $17.63, indicating a potential downside of 9.48%. United Dominion Realty Trust has a consensus target price of $39.10, indicating a potential upside of 1.27%. Given United Dominion Realty Trust’s higher possible upside, analysts clearly believe United Dominion Realty Trust is more favorable than Preferred Apartment Communities.
Insider and Institutional Ownership
97.6% of United Dominion Realty Trust shares are owned by institutional investors. 3.1% of United Dominion Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Preferred Apartment Communities 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. United Dominion Realty Trust has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Preferred Apartment Communities and United Dominion Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Preferred Apartment Communities||$249.98 million||2.60||$142.18 million||N/A||N/A|
|United Dominion Realty Trust||$979.22 million||10.55||$616.47 million||$1.10||35.10|
United Dominion Realty Trust has higher revenue and earnings than Preferred Apartment Communities.
United Dominion Realty Trust beats Preferred Apartment Communities on 12 of the 14 factors compared between the two stocks.
About Preferred Apartment Communities
Preferred Apartment Communities, Inc. is a real estate investment trust (REIT). The Company is formed to acquire and operate multifamily properties in select targeted markets throughout the United States. It operates through segments, including multifamily communities, real estate related financing, new market properties and office buildings. The multifamily communities segment consists of its portfolio of owned residential multifamily communities. The real estate related financing segment consists of the Company’s portfolio of real estate loans, bridge loans, and other instruments deployed by it to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. The new market properties segment consists of its portfolio of grocery-anchored shopping centers. The office buildings segment consists of its three office buildings located in Atlanta, Georgia and Birmingham, Alabama.
About United Dominion Realty Trust
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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