Independence Realty Trust (NYSE:IRT – Get Free Report) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Profitability
This table compares Independence Realty Trust and InterRent Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Independence Realty Trust | 8.60% | 1.58% | 0.94% |
| InterRent Real Estate Investment Trust | -42.31% | -4.53% | -2.52% |
Insider & Institutional Ownership
88.3% of Independence Realty Trust shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Independence Realty Trust | $657.70 million | 5.94 | $56.56 million | $0.24 | 68.63 |
| InterRent Real Estate Investment Trust | $179.73 million | 7.63 | -$113.59 million | ($0.51) | -19.22 |
Independence Realty Trust 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 Independence Realty Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Independence Realty Trust and InterRent Real Estate Investment Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Independence Realty Trust | 1 | 4 | 8 | 0 | 2.54 |
| InterRent Real Estate Investment Trust | 1 | 0 | 0 | 0 | 1.00 |
Independence Realty Trust currently has a consensus target price of $21.35, suggesting a potential upside of 29.63%. Given Independence Realty Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe Independence Realty Trust is more favorable than InterRent Real Estate Investment Trust.
Dividends
Independence Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 4.1%. InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Independence Realty Trust pays out 283.3% 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 -56.9% of its earnings in the form of a dividend. Independence Realty Trust has increased its dividend for 3 consecutive years. Independence Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Independence Realty Trust has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, InterRent Real Estate Investment Trust has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Summary
Independence Realty Trust beats InterRent Real Estate Investment Trust on 15 of the 17 factors compared between the two stocks.
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.
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.
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