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

Institutional & Insider Ownership

98.5% of United Dominion Realty Trust shares are owned by institutional investors. Comparatively, 73.6% of Silver Bay Realty Trust Corp shares are owned by institutional investors. 3.1% of United Dominion Realty Trust shares are owned by company insiders. Comparatively, 7.3% of Silver Bay Realty Trust Corp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares United Dominion Realty Trust and Silver Bay Realty Trust Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Dominion Realty Trust $979.22 million 10.64 $616.47 million $1.10 35.39
Silver Bay Realty Trust Corp N/A N/A N/A ($0.16) -134.31

United Dominion Realty Trust has higher revenue and earnings than Silver Bay Realty Trust Corp. Silver Bay Realty Trust Corp 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.

Volatility & Risk

United Dominion Realty Trust has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Silver Bay Realty Trust Corp has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for United Dominion Realty Trust and Silver Bay Realty Trust Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Dominion Realty Trust 2 7 3 0 2.08
Silver Bay Realty Trust Corp 0 4 0 0 2.00

United Dominion Realty Trust currently has a consensus target price of $38.25, suggesting a potential downside of 1.75%. Silver Bay Realty Trust Corp has a consensus target price of $19.83, suggesting a potential downside of 7.71%. Given United Dominion Realty Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe United Dominion Realty Trust is more favorable than Silver Bay Realty Trust Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
United Dominion Realty Trust 30.74% 10.40% 3.97%
Silver Bay Realty Trust Corp -5.71% -1.42% -0.61%

Dividends

United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Silver Bay Realty Trust Corp pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. United Dominion Realty Trust pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust Corp pays out -325.0% of its earnings in the form of a dividend. United Dominion Realty Trust has increased its dividend for 3 consecutive years and Silver Bay Realty Trust Corp has increased its dividend for 7 consecutive years.

Summary

United Dominion Realty Trust beats Silver Bay Realty Trust Corp on 10 of the 14 factors compared between the two stocks.

About United Dominion Realty Trust

UDR, Inc. is a self-administered real estate investment trust. The Company owns, operates, acquires, renovates, develops, redevelops, disposes of and manages multifamily apartment communities generally located in various markets across the United States. The Company’s segments are Same-Store Communities and Non-Mature Communities/Other. As of December 31, 2016, the Company’s consolidated real estate portfolio included 127 communities located in 18 markets, with a total of 39,454 completed apartment homes. As of December 31, 2016, the Company also had an ownership interest in 27 communities containing 6,849 apartment homes through unconsolidated joint ventures or partnerships. As of December 31, 2016, the Company’s properties were in various locations, such as Orange County, San Francisco and Los Angeles in California; Seattle, Washington; Richmond, Virginia; Baltimore, Maryland; Orlando and Tampa in Florida; Nashville, Tennessee, and Dallas and Austin in Texas.

About Silver Bay Realty Trust Corp

Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.

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