Contrasting BRT Realty Trust (BRT) and The Competition

BRT Realty Trust (NYSE: BRT) is one of 42 publicly-traded companies in the “Residential REITs” industry, but how does it compare to its peers? We will compare BRT Realty Trust to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Insider and Institutional Ownership

22.1% of BRT Realty Trust shares are owned by institutional investors. Comparatively, 74.3% of shares of all “Residential REITs” companies are owned by institutional investors. 41.9% of BRT Realty Trust shares are owned by insiders. Comparatively, 10.1% of shares of all “Residential REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BRT Realty Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRT Realty Trust 0 1 2 0 2.67
BRT Realty Trust Competitors 187 1230 1254 32 2.42

BRT Realty Trust currently has a consensus target price of $11.13, suggesting a potential upside of 0.50%. As a group, “Residential REITs” companies have a potential upside of 8.05%. Given BRT Realty Trust’s peers higher probable upside, analysts clearly believe BRT Realty Trust has less favorable growth aspects than its peers.

Dividends

BRT Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 6.5%. BRT Realty Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.5% and pay out 154.2% of their earnings in the form of a dividend. BRT Realty Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Volatility & Risk

BRT Realty Trust has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, BRT Realty Trust’s peers have a beta of 0.51, meaning that their average share price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares BRT Realty Trust and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BRT Realty Trust $94.26 million $31.28 million 13.84
BRT Realty Trust Competitors $673.41 million $325.74 million 21.04

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

Profitability

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

Net Margins Return on Equity Return on Assets
BRT Realty Trust 10.81% 5.07% 1.24%
BRT Realty Trust Competitors 20.47% 4.10% 1.59%

Summary

BRT Realty Trust peers beat BRT Realty Trust on 9 of the 15 factors compared.

About BRT Realty Trust

BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.

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