Comparing Equity Lifestyle Properties (NYSE:ELS) and United Dominion Realty Trust (NYSE:UDR)

United Dominion Realty Trust (NYSE:UDR) and Equity Lifestyle Properties (NYSE:ELS) are both large-cap real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Dividends

United Dominion Realty Trust pays an annual dividend of $1.74 per share and has a dividend yield of 4.7%. Equity Lifestyle Properties pays an annual dividend of $2.17 per share and has a dividend yield of 3.5%. United Dominion Realty Trust pays out 110.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Lifestyle Properties pays out 106.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Dominion Realty Trust has raised its dividend for 15 consecutive years and Equity Lifestyle Properties has raised its dividend for 21 consecutive years.

Valuation & Earnings

This table compares United Dominion Realty Trust and Equity Lifestyle Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Dominion Realty Trust	$1.71 billion	6.98	$377.70 million	$1.57	23.69
Equity Lifestyle Properties	$1.50 billion	8.13	$386.51 million	$2.03	30.81

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

Volatility & Risk

United Dominion Realty Trust has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Equity Lifestyle Properties has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for United Dominion Realty Trust and Equity Lifestyle Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Dominion Realty Trust	2	9	5	1	2.29
Equity Lifestyle Properties	2	6	6	1	2.40

United Dominion Realty Trust currently has a consensus price target of $40.10, suggesting a potential upside of 7.80%. Equity Lifestyle Properties has a consensus price target of $67.02, suggesting a potential upside of 7.14%. Given United Dominion Realty Trust’s higher possible upside, equities analysts plainly believe United Dominion Realty Trust is more favorable than Equity Lifestyle Properties.

Profitability

This table compares United Dominion Realty Trust and Equity Lifestyle Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Dominion Realty Trust	40.75%	22.39%	6.73%
Equity Lifestyle Properties	24.97%	21.73%	6.84%

Insider & Institutional Ownership

97.8% of United Dominion Realty Trust shares are held by institutional investors. Comparatively, 97.2% of Equity Lifestyle Properties shares are held by institutional investors. 1.8% of United Dominion Realty Trust shares are held by insiders. Comparatively, 0.8% of Equity Lifestyle Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Equity Lifestyle Properties beats United Dominion Realty Trust on 9 of the 17 factors compared between the two stocks.

About United Dominion Realty Trust

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

About Equity Lifestyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.