Centerspace (CSR) and Its Peers Critical Contrast

Centerspace (NYSE:CSR) is one of 57 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its rivals? We will compare Centerspace to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Insider and Institutional Ownership

79.0% of Centerspace shares are held by institutional investors. Comparatively, 55.6% of shares of all “Residential REITs” companies are held by institutional investors. 0.5% of Centerspace shares are held by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Centerspace and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Centerspace	$256.99 million	$17.59 million	10.94
Centerspace Competitors	$775.71 million	$238.42 million	36.29

Centerspace’s rivals have higher revenue and earnings than Centerspace. Centerspace is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Centerspace has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Centerspace’s rivals have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

Profitability

This table compares Centerspace and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	35.40%	10.82%	4.89%
Centerspace Competitors	9.71%	2.37%	2.33%

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.3%. Centerspace pays out 57.6% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.7% and pay out 199.4% of their earnings in the form of a dividend. Centerspace has raised its dividend for 2 consecutive years. Centerspace is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations for Centerspace and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	8	2	0	2.20
Centerspace Competitors	619	3263	3378	147	2.41

Centerspace currently has a consensus price target of $62.50, indicating a potential upside of 6.77%. As a group, “Residential REITs” companies have a potential upside of 11.10%. Given Centerspace’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Centerspace has less favorable growth aspects than its rivals.

Summary

Centerspace rivals beat Centerspace on 8 of the 15 factors compared.

Centerspace Company Profile

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.