Analyzing Centerspace (NYSE:CSR) & Independence Realty Trust (NYSE:IRT)

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

Insider and Institutional Ownership

88.3% of Independence Realty Trust shares are held by institutional investors. Comparatively, 79.0% of Centerspace shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by insiders. Comparatively, 0.4% of Centerspace shares are held by 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.

Valuation & Earnings

This table compares Independence Realty Trust and Centerspace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$651.53 million	6.18	$39.29 million	$0.10	168.35
Centerspace	$260.98 million	4.10	-$10.69 million	$1.79	35.79

Independence Realty Trust has higher revenue and earnings than Centerspace. Centerspace 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Independence Realty Trust and Centerspace, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	1	4	8	0	2.54
Centerspace	0	6	2	0	2.25

Independence Realty Trust currently has a consensus target price of $21.35, suggesting a potential upside of 26.82%. Centerspace has a consensus target price of $69.86, suggesting a potential upside of 9.05%. Given Independence Realty Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Independence Realty Trust is more favorable than Centerspace.

Profitability

This table compares Independence Realty Trust and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	3.42%	0.62%	0.37%
Centerspace	11.14%	3.52%	1.54%

Risk & Volatility

Independence Realty Trust has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Centerspace has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Dividends

Independence Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.8%. Independence Realty Trust pays out 680.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out 172.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust has increased its dividend for 3 consecutive years and Centerspace has increased its dividend for 2 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Independence Realty Trust beats Centerspace on 11 of the 17 factors compared between the two stocks.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.