Independence Realty Trust (NYSE: IRT) is one of 45 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its competitors? We will compare Independence Realty Trust to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Insider and Institutional Ownership

61.9% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Independence Realty Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Independence Realty Trust -10.91% -3.08% -1.28%
Independence Realty Trust Competitors 25.90% 5.85% 2.26%

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.1%. Independence Realty Trust pays out -276.9% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 134.4% of their earnings in the form of a dividend. Independence Realty Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Independence Realty Trust and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Independence Realty Trust N/A N/A -39.04
Independence Realty Trust Competitors $653.39 million $367.19 million 1.35

Independence Realty Trust’s competitors have higher revenue and earnings than Independence Realty Trust. Independence Realty Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for Independence Realty Trust and its competitors, 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
Independence Realty Trust Competitors 181 1217 1254 30 2.42

Independence Realty Trust presently has a consensus target price of $10.80, suggesting a potential upside of 6.40%. As a group, “Residential REITs” companies have a potential upside of 8.31%. Given Independence Realty Trust’s competitors higher possible upside, analysts plainly believe Independence Realty Trust has less favorable growth aspects than its competitors.

Volatility & Risk

Independence Realty Trust has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Independence Realty Trust’s competitors have a beta of 0.55, indicating that their average share price is 45% less volatile than the S&P 500.

Summary

Independence Realty Trust competitors beat Independence Realty Trust on 8 of the 14 factors compared.

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 September 26, 2017, the Company owns and operates 55 multifamily apartment properties, totaling 15,165 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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