Equity Residential (NYSE:EQR – Get Free Report) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Risk & Volatility
Equity Residential has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, InterRent Real Estate Investment Trust has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Profitability
This table compares Equity Residential and InterRent Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equity Residential | 33.22% | 9.05% | 4.85% |
| InterRent Real Estate Investment Trust | -74.48% | -7.61% | -4.35% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity Residential | 0 | 8 | 8 | 0 | 2.50 |
| InterRent Real Estate Investment Trust | 0 | 0 | 0 | 3 | 4.00 |
Equity Residential currently has a consensus price target of $77.7813, suggesting a potential upside of 21.32%. Given Equity Residential’s higher probable upside, research analysts plainly believe Equity Residential is more favorable than InterRent Real Estate Investment Trust.
Insider & Institutional Ownership
92.7% of Equity Residential shares are owned by institutional investors. 1.1% of Equity Residential shares are owned by insiders. Comparatively, 6.8% of InterRent Real Estate Investment Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Equity Residential and InterRent 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 | |
| Equity Residential | $2.98 billion | 8.22 | $1.04 billion | $2.65 | 24.19 |
| InterRent Real Estate Investment Trust | $179.73 million | 7.46 | -$113.59 million | ($0.90) | -10.67 |
Equity Residential has higher revenue and earnings than InterRent Real Estate Investment Trust. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
Dividends
Equity Residential pays an annual dividend of $2.77 per share and has a dividend yield of 4.3%. InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Equity Residential pays out 104.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InterRent Real Estate Investment Trust pays out -32.2% of its earnings in the form of a dividend. Equity Residential has raised its dividend for 4 consecutive years. Equity Residential is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Equity Residential beats InterRent Real Estate Investment Trust on 14 of the 18 factors compared between the two stocks.
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 305 properties consisting of 80,683 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.
About InterRent Real Estate Investment Trust
InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.
Receive News & Ratings for Equity Residential Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equity Residential and related companies with MarketBeat.com's FREE daily email newsletter.
