Head-To-Head Analysis: UMH Properties (NYSE:UMH) versus Centerspace (NYSE:CSR)

UMH Properties (NYSE:UMH) and Centerspace (NYSE:CSR) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Volatility and Risk

UMH Properties has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for UMH Properties and Centerspace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	1	2	0	2.67
Centerspace	0	4	3	1	2.63

UMH Properties presently has a consensus target price of $20.25, suggesting a potential upside of 33.80%. Centerspace has a consensus target price of $68.75, suggesting a potential upside of 15.44%. Given UMH Properties’ stronger consensus rating and higher probable upside, equities analysts plainly believe UMH Properties is more favorable than Centerspace.

Profitability

This table compares UMH Properties and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMH Properties	12.18%	5.19%	1.96%
Centerspace	-9.13%	-2.81%	-1.27%

Valuation and Earnings

This table compares UMH Properties and Centerspace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$240.55 million	5.34	$21.64 million	$0.14	108.11
Centerspace	$267.08 million	3.74	-$10.69 million	($1.80)	-33.09

UMH Properties has higher earnings, but lower revenue than Centerspace. Centerspace is trading at a lower price-to-earnings ratio than UMH Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.9%. Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.2%. UMH Properties pays out 642.9% 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 pays out -171.1% of its earnings in the form of a dividend. UMH Properties has raised its dividend for 4 consecutive years and Centerspace has raised its dividend for 2 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

75.4% of UMH Properties shares are owned by institutional investors. Comparatively, 79.0% of Centerspace shares are owned by institutional investors. 8.8% of UMH Properties shares are owned by company insiders. Comparatively, 0.4% of Centerspace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

UMH Properties beats Centerspace on 13 of the 18 factors compared between the two stocks.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate

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.