Bluerock Residential Growth REIT (NYSE: BRG) and United Dominion Realty Trust (NYSE:UDR) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

97.6% of United Dominion Realty Trust shares are held by institutional investors. 3.1% of United Dominion Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Bluerock Residential Growth REIT and United Dominion Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bluerock Residential Growth REIT 0 1 2 0 2.67
United Dominion Realty Trust 2 9 3 0 2.07

Bluerock Residential Growth REIT currently has a consensus target price of $13.62, suggesting a potential upside of 23.34%. United Dominion Realty Trust has a consensus target price of $38.89, suggesting a potential upside of 2.45%. Given Bluerock Residential Growth REIT’s stronger consensus rating and higher probable upside, equities analysts plainly believe Bluerock Residential Growth REIT is more favorable than United Dominion Realty Trust.

Profitability

This table compares Bluerock Residential Growth REIT and United Dominion Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bluerock Residential Growth REIT 128.54% 30.92% 10.01%
United Dominion Realty Trust 30.74% 10.40% 3.97%

Valuation and Earnings

This table compares Bluerock Residential Growth REIT and United Dominion Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bluerock Residential Growth REIT N/A N/A N/A N/A N/A
United Dominion Realty Trust $979.22 million 10.37 $616.47 million $1.10 34.51

United Dominion Realty Trust has higher revenue and earnings than Bluerock Residential Growth REIT.

Dividends

United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.3%. Bluerock Residential Growth REIT does not pay a dividend. 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. United Dominion Realty Trust has increased its dividend for 7 consecutive years.

Bluerock Residential Growth REIT Company Profile

Bluerock Residential Growth REIT, Inc. is a real estate investment trust. The Company is focused on acquiring a portfolio of residential real estate assets. As of December 31, 2016, the Company’s portfolio consisted of interests in 31 properties (21 operating and 10 development properties). As of December 31, 2016, its properties contained an aggregate of 9,570 units, consisting of 6,972 operating units and 2,598 units under development. As of December 31, 2016, its operating properties included ARIUM at Palmer Ranch, Sarasota; ARIUM Grandewood, Orlando; ARIUM Gulfshore, Naples; ARIUM Palms, Orlando; ARIUM Pine Lakes, Port St. Lucie; ARIUM Westside, Atlanta; Ashton Reserve, Charlotte; Enders at Baldwin Park, Orlando; Fox Hill, Austin; Lansbrook Village, Palm Harbor; Legacy at Southpark, Austin; Nevadan, Atlanta; Roswell City Walk, Roswell; Sorrel, Frisco; Sovereign, Fort Worth; The Preserve at Henderson Beach, Destin; Village Green of Ann Arbor, Ann Arbor, and Whetstone, Durham.

United Dominion Realty Trust Company Profile

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.

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