Financial Analysis: Centerspace (NYSE:CSR) versus United Dominion Realty Trust (NYSE:UDR)

Centerspace (NYSE:CSR) and United Dominion Realty Trust (NYSE:UDR) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Centerspace has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, United Dominion Realty Trust has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Earnings & Valuation

This table compares Centerspace and United Dominion Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$273.45 million	4.07	-$10.69 million	$1.79	37.26
United Dominion Realty Trust	$1.70 billion	6.74	$89.58 million	$0.44	78.85

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

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.6%. United Dominion Realty Trust pays an annual dividend of $1.72 per share and has a dividend yield of 5.0%. 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. United Dominion Realty Trust pays out 390.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace has raised its dividend for 2 consecutive years and United Dominion Realty Trust has raised its dividend for 15 consecutive years. United Dominion Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 97.8% of United Dominion Realty Trust shares are owned by institutional investors. 0.4% of Centerspace shares are owned by insiders. Comparatively, 3.4% of United Dominion Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Centerspace and United Dominion Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	7	3	0	2.30
United Dominion Realty Trust	1	13	4	0	2.17

Centerspace presently has a consensus target price of $69.67, indicating a potential upside of 4.46%. United Dominion Realty Trust has a consensus target price of $41.10, indicating a potential upside of 18.46%. Given United Dominion Realty Trust’s higher possible upside, analysts clearly believe United Dominion Realty Trust is more favorable than Centerspace.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centerspace	-9.13%	-2.81%	-1.27%
United Dominion Realty Trust	8.80%	4.51%	1.39%

Summary

United Dominion Realty Trust beats Centerspace on 14 of the 17 factors compared between the two stocks.

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.

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.