Independence Realty Trust (IRT) vs. American Residential Properties (ARPI) Head to Head Review

Independence Realty Trust (NYSE: IRT) and American Residential Properties (NYSE:ARPI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Independence Realty Trust and American Residential Properties’ 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%
American Residential Properties -38.70% -9.17% -3.64%

Valuation and Earnings

This table compares Independence Realty Trust and American Residential Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Independence Realty Trust $153.36 million 4.65 -$9.80 million ($0.26) -32.81
American Residential Properties N/A N/A N/A ($1.40) N/A

American Residential Properties has lower revenue, but higher earnings than Independence Realty Trust. Independence Realty Trust is trading at a lower price-to-earnings ratio than American Residential Properties, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

79.2% of Independence Realty Trust shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Independence Realty Trust and American Residential Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Independence Realty Trust 0 1 5 0 2.83
American Residential Properties 0 0 0 0 N/A

Independence Realty Trust currently has a consensus price target of $11.20, suggesting a potential upside of 31.30%.

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 8.4%. American Residential Properties pays an annual dividend of $0.40 per share. Independence Realty Trust pays out -276.9% of its earnings in the form of a dividend. American Residential Properties pays out -28.6% 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. Independence Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Independence Realty Trust beats American Residential Properties on 10 of the 11 factors compared between the two stocks.

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 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.

American Residential Properties Company Profile

American Residential Properties, Inc. is an internally managed real estate investment company, which is organized as a real estate investment trust. The Company acquires, owns, renovates, and manages single-family homes as rental properties. American Residential Properties OP, L.P. acts as its operating partnership. American Residential Leasing Company, LLC is a wholly owned subsidiary of its operating partnership. The Company owns 8,893 properties in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee and Texas that were 81% leased, and it managed an additional 437 properties for ARP Phoenix Fund I, LP in Arizona and Nevada. In addition to its primary business, the Company has a private mortgage financing business.

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