Head to Head Review: Camden Property Trust (CPT) and Education Realty Trust (EDR)
Camden Property Trust (NYSE: CPT) and Education Realty Trust (NYSE:EDR) are both mid-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Risk & Volatility
Camden Property Trust has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Education Realty Trust has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
This table compares Camden Property Trust and Education Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Camden Property Trust||$876.45 million||9.75||$819.82 million||$1.64||56.20|
|Education Realty Trust||$288.97 million||9.44||$44.92 million||$0.46||78.26|
Camden Property Trust has higher revenue and earnings than Education Realty Trust. Camden Property Trust is trading at a lower price-to-earnings ratio than Education Realty Trust, indicating that it is currently the more affordable of the two stocks.
Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.3%. Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 4.3%. Camden Property Trust pays out 182.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Education Realty Trust pays out 339.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust has increased its dividend for 6 consecutive years and Education Realty Trust has increased its dividend for 6 consecutive years.
This table compares Camden Property Trust and Education Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camden Property Trust||16.81%||4.71%||2.50%|
|Education Realty Trust||11.33%||2.01%||1.32%|
This is a breakdown of current ratings and recommmendations for Camden Property Trust and Education Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camden Property Trust||0||6||8||0||2.57|
|Education Realty Trust||1||5||6||0||2.42|
Camden Property Trust presently has a consensus target price of $93.00, indicating a potential upside of 0.91%. Education Realty Trust has a consensus target price of $41.60, indicating a potential upside of 15.56%. Given Education Realty Trust’s higher possible upside, analysts clearly believe Education Realty Trust is more favorable than Camden Property Trust.
Insider and Institutional Ownership
97.2% of Camden Property Trust shares are owned by institutional investors. 4.7% of Camden Property Trust shares are owned by insiders. Comparatively, 0.5% of Education Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Camden Property Trust beats Education Realty Trust on 13 of the 16 factors compared between the two stocks.
About Camden Property Trust
Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.
About Education Realty Trust
Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.
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