Elme Communities (NYSE:ELME – Get Free Report) and Independence Realty Trust (NYSE:IRT – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Profitability
This table compares Elme Communities and Independence Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elme Communities | -5.78% | -1.33% | -0.78% |
| Independence Realty Trust | 4.31% | 0.78% | 0.46% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Elme Communities and Independence Realty Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elme Communities | 0 | 3 | 1 | 0 | 2.25 |
| Independence Realty Trust | 0 | 2 | 7 | 0 | 2.78 |
Insider and Institutional Ownership
87.9% of Elme Communities shares are owned by institutional investors. Comparatively, 88.3% of Independence Realty Trust shares are owned by institutional investors. 1.4% of Elme Communities shares are owned by company insiders. Comparatively, 0.6% of Independence Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Elme Communities and Independence Realty Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elme Communities | $241.93 million | 6.27 | -$13.10 million | ($0.15) | -114.63 |
| Independence Realty Trust | $640.03 million | 6.58 | $39.29 million | $0.12 | 150.05 |
Independence Realty Trust has higher revenue and earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Independence Realty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Elme Communities has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
Dividends
Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Independence Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Independence Realty 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. Independence Realty Trust has increased its dividend for 3 consecutive years. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Independence Realty Trust beats Elme Communities on 13 of the 17 factors compared between the two stocks.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
About Independence Realty Trust
Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.
Receive News & Ratings for Elme Communities Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Elme Communities and related companies with MarketBeat.com's FREE daily email newsletter.
