Independence Realty Trust (NYSE: IRT) and Clipper Realty (NYSE:CLPR) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
This is a breakdown of current recommendations and price targets for Independence Realty Trust and Clipper Realty, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Realty Trust||0||1||5||0||2.83|
Independence Realty Trust presently has a consensus target price of $11.20, indicating a potential upside of 15.23%. Clipper Realty has a consensus target price of $15.67, indicating a potential upside of 61.68%. Given Clipper Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Clipper Realty is more favorable than Independence Realty Trust.
This table compares Independence Realty Trust and Clipper Realty’s 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 pays an annual dividend of $0.72 per share and has a dividend yield of 7.4%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 3.9%. Independence Realty Trust pays out -276.9% of its earnings in the form of a dividend. Clipper Realty pays out -190.0% 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.
Valuation and Earnings
This table compares Independence Realty Trust and Clipper Realty’s top-line 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||5.29||-$9.80 million||($0.26)||-37.38|
|Clipper Realty||$93.00 million||1.86||-$3.73 million||($0.20)||-48.45|
Clipper Realty has lower revenue, but higher earnings than Independence Realty Trust. Clipper Realty is trading at a lower price-to-earnings ratio than Independence Realty Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
78.5% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 57.1% of Clipper Realty shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Independence Realty Trust beats Clipper Realty on 8 of the 15 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.
Clipper Realty Company Profile
Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.
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