United Dominion Realty Trust (NYSE:UDR) versus Veris Residential (NYSE:VRE) Critical Survey

United Dominion Realty Trust (NYSE:UDR) and Veris Residential (NYSE:VRE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares United Dominion Realty Trust and Veris Residential”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Dominion Realty Trust	$1.69 billion	7.12	$89.58 million	$0.38	95.57
Veris Residential	$271.07 million	5.17	-$23.12 million	($0.23)	-65.28

United Dominion Realty Trust has higher revenue and earnings than Veris Residential. Veris Residential is trading at a lower price-to-earnings ratio than United Dominion Realty Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

97.8% of United Dominion Realty Trust shares are owned by institutional investors. Comparatively, 93.0% of Veris Residential shares are owned by institutional investors. 3.4% of United Dominion Realty Trust shares are owned by company insiders. Comparatively, 16.4% of Veris Residential shares are owned 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.

Analyst Recommendations

This is a breakdown of recent ratings for United Dominion Realty Trust and Veris Residential, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Dominion Realty Trust	0	13	4	0	2.24
Veris Residential	0	4	2	0	2.33

United Dominion Realty Trust currently has a consensus price target of $43.82, suggesting a potential upside of 20.67%. Veris Residential has a consensus price target of $19.20, suggesting a potential upside of 27.87%. Given Veris Residential’s stronger consensus rating and higher probable upside, analysts clearly believe Veris Residential is more favorable than United Dominion Realty Trust.

Risk & Volatility

United Dominion Realty Trust has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.

Dividends

United Dominion Realty Trust pays an annual dividend of $1.72 per share and has a dividend yield of 4.7%. Veris Residential pays an annual dividend of $0.32 per share and has a dividend yield of 2.1%. United Dominion Realty Trust pays out 452.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veris Residential pays out -139.1% of its earnings in the form of a dividend. United Dominion Realty Trust has raised its dividend for 15 consecutive years and Veris Residential has raised its dividend for 1 consecutive years. United Dominion Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares United Dominion Realty Trust and Veris Residential’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Dominion Realty Trust	7.81%	4.11%	1.27%
Veris Residential	22.09%	4.78%	1.93%

Summary

United Dominion Realty Trust beats Veris Residential on 9 of the 17 factors compared between the two stocks.

About United Dominion Realty Trust

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.