Independence Realty Trust (IRT) and Its Peers Critical Comparison
Independence Realty Trust (NYSE: IRT) is one of 42 publicly-traded companies in the “Residential REITs” industry, but how does it weigh in compared to its peers? We will compare Independence Realty Trust to similar companies based on the strength of its risk, institutional ownership, valuation, analyst recommendations, dividends, profitability and earnings.
Institutional and Insider Ownership
67.8% of Independence Realty Trust shares are held by institutional investors. Comparatively, 76.4% of shares of all “Residential REITs” companies are held by institutional investors. 0.6% of Independence Realty Trust shares are held by insiders. Comparatively, 7.2% of shares of all “Residential REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Independence Realty Trust has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Independence Realty Trust’s peers have a beta of 0.50, indicating that their average stock price is 50% less volatile than the S&P 500.
This is a summary of recent ratings for Independence Realty Trust and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Realty Trust||0||0||6||0||3.00|
|Independence Realty Trust Competitors||186||1218||1250||32||2.42|
Independence Realty Trust currently has a consensus target price of $10.80, suggesting a potential upside of 4.55%. As a group, “Residential REITs” companies have a potential upside of 7.19%. Given Independence Realty Trust’s peers higher probable upside, analysts clearly believe Independence Realty Trust has less favorable growth aspects than its peers.
This table compares Independence Realty Trust and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Realty Trust||-10.91%||-3.08%||-1.28%|
|Independence Realty Trust Competitors||20.47%||4.10%||1.59%|
Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.0%. Independence Realty Trust pays out -276.9% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.5% and pay out 146.0% of their earnings in the form of a dividend. Independence Realty Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Independence Realty Trust and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Independence Realty Trust||$153.36 million||-$9.80 million||-39.73|
|Independence Realty Trust Competitors||$673.41 million||$325.74 million||126.58|
Independence Realty Trust’s peers have higher revenue and earnings than Independence Realty Trust. Independence Realty Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Independence Realty Trust peers beat Independence Realty Trust on 10 of the 15 factors compared.
About Independence Realty Trust
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 September 26, 2017, the Company owns and operates 55 multifamily apartment properties, totaling 15,165 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.
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