Head to Head Survey: UMH Properties (NYSE:UMH) versus InterRent Real Estate Investment Trust (OTCMKTS:IIPZF)

InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) and UMH Properties (NYSE:UMH) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares InterRent Real Estate Investment Trust and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterRent Real Estate Investment Trust	1.81%	0.20%	0.11%
UMH Properties	9.04%	4.47%	1.47%

Earnings & Valuation

This table compares InterRent Real Estate Investment Trust and UMH Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterRent Real Estate Investment Trust	$178.28 million	7.46	$13.24 million	$0.03	317.00
UMH Properties	$261.75 million	4.77	$26.50 million	$0.05	291.00

UMH Properties has higher revenue and earnings than InterRent Real Estate Investment Trust. UMH Properties is trading at a lower price-to-earnings ratio than InterRent Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

InterRent Real Estate Investment Trust pays an annual dividend of $0.17 per share and has a dividend yield of 1.8%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 6.2%. InterRent Real Estate Investment Trust pays out 566.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out 1,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 4 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

InterRent Real Estate Investment Trust has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Institutional and Insider Ownership

75.4% of UMH Properties shares are owned by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are owned by insiders. Comparatively, 8.3% of UMH Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for InterRent Real Estate Investment Trust and UMH Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterRent Real Estate Investment Trust	1	0	0	0	1.00
UMH Properties	0	2	2	1	2.80

UMH Properties has a consensus target price of $17.25, suggesting a potential upside of 18.56%. Given UMH Properties’ stronger consensus rating and higher probable upside, analysts clearly believe UMH Properties is more favorable than InterRent Real Estate Investment Trust.

Summary

UMH Properties beats InterRent Real Estate Investment Trust on 16 of the 18 factors compared between the two stocks.

About InterRent Real Estate Investment Trust

InterRent Real Estate Investment Trust was a Canadian real estate investment trust focused on owning, managing and improving multi-residential rental properties. Its business centered on providing apartment homes to tenants and overseeing property operations, maintenance and leasing. The trust’s portfolio was concentrated in urban markets, particularly in Ontario and Quebec, including Ottawa, Toronto and Montreal. InterRent also pursued renovations and upgrades intended to enhance its properties and rental offerings.

About UMH Properties

UMH Properties, Inc. is a real estate investment trust (REIT) that owns and operates manufactured home communities. Its primary business is providing developed homesites for residents who own or rent manufactured homes. The company also offers manufactured homes for rent and sale, giving residents options for living in its communities. UMH serves markets across the Northeast, Midwest and Southeast United States. Founded in 1968, UMH is headquartered in Freehold, New Jersey. Samuel A. Landy serves as the company’s president and chief executive officer.