Head-To-Head Survey: Centerspace (NYSE:CSR) versus Essex Property Trust (NYSE:ESS)

Centerspace (NYSE:CSR) and Essex Property Trust (NYSE:ESS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Risk & Volatility

Centerspace has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Essex Property Trust has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 92.9% of Essex Property Trust shares are owned by institutional investors. 0.9% of Centerspace shares are owned by insiders. Comparatively, 3.8% of Essex Property Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Centerspace pays an annual dividend of $2.92 per share and has a dividend yield of 4.7%. Essex Property Trust pays an annual dividend of $9.24 per share and has a dividend yield of 4.1%. Centerspace pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust pays out 112.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has raised its dividend for 30 consecutive years.

Valuation and Earnings

This table compares Centerspace and Essex Property Trust’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$256.72 million	3.63	-$13.47 million	$2.19	28.50
Essex Property Trust	$1.61 billion	9.00	$408.32 million	$8.22	27.40

Essex Property Trust has higher revenue and earnings than Centerspace. Essex Property Trust is trading at a lower price-to-earnings ratio than Centerspace, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Centerspace and Essex Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	14.73%	4.45%	1.97%
Essex Property Trust	32.13%	9.10%	4.29%

Analyst Recommendations

This is a breakdown of recent recommendations for Centerspace and Essex Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	5	1	0	2.17
Essex Property Trust	3	12	6	0	2.14

Centerspace currently has a consensus target price of $70.80, suggesting a potential upside of 13.44%. Essex Property Trust has a consensus target price of $243.30, suggesting a potential upside of 8.03%. Given Centerspace’s stronger consensus rating and higher possible upside, equities analysts clearly believe Centerspace is more favorable than Essex Property Trust.

Summary

Essex Property Trust beats Centerspace on 12 of the 17 factors compared between the two stocks.

About Centerspace

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 June 30, 2023, Centerspace owned interests in 75 apartment communities consisting of 13,497 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.

About Essex Property Trust

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development.