InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) and BRT Apartments (NYSE:BRT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Volatility and Risk
InterRent Real Estate Investment Trust has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Insider & Institutional Ownership
29.1% of BRT Apartments shares are owned by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are owned by company insiders. Comparatively, 42.0% of BRT Apartments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InterRent Real Estate Investment Trust | 0 | 0 | 0 | 3 | 4.00 |
| BRT Apartments | 0 | 1 | 1 | 0 | 2.50 |
BRT Apartments has a consensus target price of $21.00, indicating a potential upside of 28.52%. Given BRT Apartments’ higher possible upside, analysts plainly believe BRT Apartments is more favorable than InterRent Real Estate Investment Trust.
Earnings and Valuation
This table compares InterRent Real Estate Investment Trust and BRT Apartments”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InterRent Real Estate Investment Trust | $179.73 million | 7.53 | -$113.59 million | ($0.90) | -10.77 |
| BRT Apartments | $95.63 million | 3.23 | -$9.79 million | ($0.49) | -33.35 |
BRT Apartments has lower revenue, but higher earnings than InterRent Real Estate Investment Trust. BRT Apartments 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 $0.29 per share and has a dividend yield of 3.0%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 6.1%. InterRent Real Estate Investment Trust pays out -32.2% of its earnings in the form of a dividend. BRT Apartments pays out -204.1% 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. BRT Apartments is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares InterRent Real Estate Investment Trust and BRT Apartments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InterRent Real Estate Investment Trust | -74.48% | -7.71% | -4.37% |
| BRT Apartments | -9.51% | -4.57% | -1.30% |
Summary
BRT Apartments beats InterRent Real Estate Investment Trust on 11 of the 16 factors compared between the two stocks.
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.
About BRT Apartments
BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.
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