AvalonBay Communities (NYSE:AVB) versus Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF) Head-To-Head Review

AvalonBay Communities (NYSE:AVB) and Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares AvalonBay Communities and Dream Residential Real Estate Investment Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvalonBay Communities	$3.04 billion	8.80	$1.05 billion	$6.12	30.63
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A	N/A	N/A

AvalonBay Communities has higher revenue and earnings than Dream Residential Real Estate Investment Trust.

Profitability

This table compares AvalonBay Communities and Dream Residential Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvalonBay Communities	33.33%	8.58%	4.65%
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for AvalonBay Communities and Dream Residential Real Estate Investment Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvalonBay Communities	0	15	3	0	2.17
Dream Residential Real Estate Investment Trust	0	1	0	0	2.00

AvalonBay Communities currently has a consensus price target of $196.80, suggesting a potential upside of 4.97%. Given AvalonBay Communities’ stronger consensus rating and higher probable upside, research analysts clearly believe AvalonBay Communities is more favorable than Dream Residential Real Estate Investment Trust.

Institutional & Insider Ownership

92.6% of AvalonBay Communities shares are held by institutional investors. 0.5% of AvalonBay Communities shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

AvalonBay Communities beats Dream Residential Real Estate Investment Trust on 9 of the 9 factors compared between the two stocks.

About AvalonBay Communities

AvalonBay Communities, Inc. is a real estate investment trust, which engages in the development, acquisition, ownership, and operation of multifamily communities. It operates through the following segments: Same Store, Other Stabilized, and Development or Redevelopment. The Same Store segment refers to the operating communities that were owned and had stabilized occupancy. The Other Stabilized segment includes all other complete communities that have stabilized occupancy. The Development or Redevelopment segment consists of communities that are under construction. The company was founded by Gilbert M. Meyer in 1978 and is headquartered in Arlington, VA.

About Dream Residential Real Estate Investment Trust

Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States