Equity Residential (NYSE:EQR) and Cedar Realty Trust (NYSE:CDR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
Earnings and Valuation
This table compares Equity Residential and Cedar Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Equity Residential||$2.70 billion||11.89||$970.38 million||$3.49||24.77|
|Cedar Realty Trust||$144.08 million||1.74||$1.08 million||$0.45||6.24|
Equity Residential has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Equity Residential has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Equity Residential and Cedar Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||0||1||0||2.00|
Equity Residential currently has a consensus target price of $83.57, indicating a potential downside of 3.34%. Cedar Realty Trust has a consensus target price of $3.50, indicating a potential upside of 24.56%. Given Cedar Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Cedar Realty Trust is more favorable than Equity Residential.
Equity Residential pays an annual dividend of $2.27 per share and has a dividend yield of 2.6%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 7.1%. Equity Residential pays out 65.0% of its earnings in the form of a dividend. Cedar Realty Trust pays out 44.4% 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. Equity Residential has raised its dividend for 2 consecutive years. Cedar Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
89.3% of Equity Residential shares are held by institutional investors. Comparatively, 87.8% of Cedar Realty Trust shares are held by institutional investors. 2.4% of Equity Residential shares are held by company insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Equity Residential and Cedar Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||0.75%||0.29%||0.09%|
Equity Residential beats Cedar Realty Trust on 10 of the 16 factors compared between the two stocks.
About Equity Residential
Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today's renters want to live, work and play. Equity Residential owns or has investments in 307 properties consisting of 79,482 apartment units, primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company's portfolio (excluding properties treated as "held for sale") comprises 58 properties, with approximately 8.7 million square feet of gross leasable area.
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