United Dominion Realty Trust (NYSE: UDR) and Apartment Investment and Management (NYSE:AIV) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares United Dominion Realty Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Dominion Realty Trust 29.41% 10.18% 3.85%
Apartment Investment and Management 21.36% 13.81% 3.45%

Risk & Volatility

United Dominion Realty Trust has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Dividends

United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. Apartment Investment and Management pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. United Dominion Realty Trust pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out 109.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Dominion Realty Trust has raised its dividend for 6 consecutive years and Apartment Investment and Management has raised its dividend for 7 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

97.2% of United Dominion Realty Trust shares are owned by institutional investors. Comparatively, 98.8% of Apartment Investment and Management shares are owned by institutional investors. 3.1% of United Dominion Realty Trust shares are owned by company insiders. Comparatively, 1.2% of Apartment Investment and Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares United Dominion Realty Trust and Apartment Investment and Management’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
United Dominion Realty Trust $959.86 million 11.09 $292.71 million $1.06 37.49
Apartment Investment and Management $995.85 million 7.12 $430.41 million $1.31 34.45

Apartment Investment and Management has higher revenue and earnings than United Dominion Realty Trust. Apartment Investment and Management is trading at a lower price-to-earnings ratio than United Dominion Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for United Dominion Realty Trust and Apartment Investment and Management, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Dominion Realty Trust 2 9 4 0 2.13
Apartment Investment and Management 1 5 2 0 2.13

United Dominion Realty Trust presently has a consensus target price of $39.58, suggesting a potential downside of 0.39%. Apartment Investment and Management has a consensus target price of $47.00, suggesting a potential upside of 4.14%. Given Apartment Investment and Management’s higher possible upside, analysts plainly believe Apartment Investment and Management is more favorable than United Dominion Realty Trust.

Summary

Apartment Investment and Management beats United Dominion Realty Trust on 10 of the 17 factors compared between the two stocks.

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.

About Apartment Investment and Management

Apartment Investment and Management Company (Aimco) is a self-administered and self-managed real estate investment trust (REIT). Aimco, through its subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, holds the ownership interests in the Aimco Operating Partnership. It operates through two segments: conventional real estate and affordable real estate. As of December 31, 2016, its real estate portfolio consisted of 189 apartment communities with 46,311 apartment homes. Aimco Operating Partnership conducts the Company’s business, which is focused on the ownership, management, redevelopment and limited development of apartment communities located in the coastal and job growth markets of the United States. Its Conventional segment consists of apartment communities it classifies as Conventional Same Store and Conventional Non-Same Store. Its affordable portfolio consists primarily of apartment communities that it manages that are owned through low-income housing tax credit partnerships.

Receive News & Ratings for United Dominion Realty Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Dominion Realty Trust Inc. and related companies with MarketBeat.com's FREE daily email newsletter.