Contrasting Centerspace (NYSE:CSR) & Elme Communities (NYSE:ELME)

Centerspace (NYSE:CSR) and Elme Communities (NYSE:ELME) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Centerspace and Elme Communities, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	4	3	1	2.63
Elme Communities	0	3	1	0	2.25

Centerspace currently has a consensus target price of $68.75, indicating a potential upside of 13.60%. Elme Communities has a consensus target price of $18.50, indicating a potential upside of 7.59%. Given Centerspace’s stronger consensus rating and higher probable upside, research analysts plainly believe Centerspace is more favorable than Elme Communities.

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.1%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Centerspace pays out -171.1% of its earnings in the form of a dividend. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Centerspace has raised its dividend for 2 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Centerspace and Elme Communities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$260.98 million	3.89	-$10.69 million	($1.80)	-33.62
Elme Communities	$241.93 million	6.27	-$13.10 million	($0.15)	-114.63

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

Volatility & Risk

Centerspace has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Elme Communities has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Centerspace and Elme Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	-9.13%	-2.81%	-1.27%
Elme Communities	-5.78%	-1.33%	-0.78%

Insider & Institutional Ownership

79.0% of Centerspace shares are held by institutional investors. Comparatively, 87.9% of Elme Communities shares are held by institutional investors. 0.4% of Centerspace shares are held by company insiders. Comparatively, 1.4% of Elme Communities shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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 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.

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.