Contrasting Independence Realty Trust (IRT) and Post Properties (PPS)
Independence Realty Trust (NYSE: IRT) and Post Properties (NYSE:PPS) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Valuation and Earnings
This table compares Independence Realty Trust and Post Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Independence Realty Trust||N/A||N/A||N/A||($0.23)||-44.61|
Independence Realty Trust is trading at a lower price-to-earnings ratio than Post Properties, indicating that it is currently the more affordable of the two stocks.
Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.0%. Post Properties pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Independence Realty Trust pays out -313.0% of its earnings in the form of a dividend. Post Properties pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust has raised its dividend for 6 consecutive years. Independence Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Independence Realty Trust and Post Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Realty Trust||-10.28%||-3.22%||-1.22%|
Risk & Volatility
Independence Realty Trust has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Post Properties has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Independence Realty Trust and Post Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Realty Trust||0||0||5||0||3.00|
Independence Realty Trust presently has a consensus price target of $10.31, suggesting a potential upside of 0.51%. Post Properties has a consensus price target of $72.50, suggesting a potential upside of 11.50%. Given Post Properties’ higher probable upside, analysts plainly believe Post Properties is more favorable than Independence Realty Trust.
Insider and Institutional Ownership
74.8% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 94.3% of Post Properties shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 2.2% of Post Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Post Properties beats Independence Realty Trust on 7 of the 12 factors compared between the two stocks.
Independence Realty Trust Company Profile
Independence Realty Trust, Inc. is an internally-managed real estate investment trust (REIT). The Company is engaged in the business of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of real estate assets. The Company owns apartment properties in geographic non-gateway markets. As of July 5, 2017, the Company owns and operates 47 multifamily apartment properties, totaling 13,198 units. Its properties include Copper Mill, Crestmont, Heritage Trace, Runaway Bay, Berkshire Square, The Crossings, Reserve at Eagle Ridge, Windrush, Heritage Park, Raindance, Augusta, Invitational, Carrington Park, Walnut Hill, Lenoxplace, Bennington Pond, Jamestown, Meadows, Oxmoor, Bayview Club, Arbors River Oaks, Fox Trails, Bridge Pointe, The Aventine Greenville and Westmont Commons.
Post Properties Company Profile
Post Properties, Inc. is a self-administrated and self-managed equity real estate investment trust (REIT). The Company’s segments include Fully stabilized (same store) communities, which includes apartment communities that have been stabilized for both the current and prior year; Newly stabilized communities, which includes communities that reached stabilized occupancy in the prior year; Lease-up communities, which includes communities that are under development, rehabilitation and in lease-up but were not stabilized by the beginning of the current year, including communities that stabilized during the current year; Acquired communities, which include communities acquired in the current or prior year, and Held for sale and sold communities, which include apartment and mixed-use communities classified as held for sale or sold. Its operating divisions include Post Apartment Management, Post Construction and Property Services, Post Investment Group and Post Corporate Services.
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