Essex Property Trust (NYSE: ESS) and UDR (NYSE:UDR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.
This is a breakdown of recent ratings for Essex Property Trust and UDR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Essex Property Trust||1||8||12||0||2.52|
Essex Property Trust currently has a consensus price target of $262.95, suggesting a potential upside of 12.84%. UDR has a consensus price target of $38.50, suggesting a potential upside of 10.63%. Given Essex Property Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Essex Property Trust is more favorable than UDR.
Essex Property Trust pays an annual dividend of $7.00 per share and has a dividend yield of 3.0%. UDR pays an annual dividend of $1.24 per share and has a dividend yield of 3.6%. Essex Property Trust pays out 106.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR pays out 288.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has raised its dividend for 24 consecutive years and UDR has raised its dividend for 8 consecutive years.
Risk & Volatility
Essex Property Trust has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
Valuation & Earnings
This table compares Essex Property Trust and UDR’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Essex Property Trust||$1.36 billion||11.30||$433.05 million||$6.58||35.47|
|UDR||$995.79 million||9.37||$121.55 million||$0.43||80.93|
Essex Property Trust has higher revenue and earnings than UDR. Essex Property Trust is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
This table compares Essex Property Trust and UDR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Essex Property Trust||31.75%||6.76%||3.46%|
Insider & Institutional Ownership
97.2% of Essex Property Trust shares are owned by institutional investors. Comparatively, 97.7% of UDR shares are owned by institutional investors. 3.3% of Essex Property Trust shares are owned by company insiders. Comparatively, 3.1% of UDR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Essex Property Trust beats UDR on 15 of the 17 factors compared between the two stocks.
Essex Property Trust Company Profile
Essex Property Trust, Inc. is a self-administered and self-managed real estate investment trust. The Company is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities, located along the West Coast. Its segments include Southern California, Northern California, Seattle Metro and Other real estate assets. The Company owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the Operating Partnership). Its properties include Mio, Form 15, Emerson Valley Village and Ashton Sherman Village. As of December 31, 2016, it owned or held an interest in 245 communities, aggregating 59,645 apartment homes, excluding its ownership in preferred equity investments, as well as two operating commercial buildings (totaling approximately 140,564 square feet), and six active development projects with 2,223 apartment homes in various stages of development.
UDR Company Profile
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.
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