Head to Head Analysis: Independence Realty Trust (NYSE:IRT) and Federal Realty Investment Trust (NYSE:FRT)

Independence Realty Trust (NYSE:IRT) and Federal Realty Investment Trust (NYSE:FRT) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Independence Realty Trust and Federal Realty Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	-0.03%	-0.01%	N/A
Federal Realty Investment Trust	24.67%	10.01%	3.47%

Valuation and Earnings

This table compares Independence Realty Trust and Federal Realty Investment Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$640.04 million	7.22	-$17.23 million	$0.18	114.03
Federal Realty Investment Trust	$1.13 billion	7.70	$236.99 million	$3.44	30.53

Federal Realty Investment Trust has higher revenue and earnings than Independence Realty Trust. Federal Realty 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.

Institutional & Insider Ownership

88.3% of Independence Realty Trust shares are held by institutional investors. Comparatively, 93.9% of Federal Realty Investment Trust shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Independence Realty Trust has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Dividends

Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 4.2%. Independence Realty Trust pays out 355.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has increased its dividend for 58 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations for Independence Realty Trust and Federal Realty Investment Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	2	5	0	2.71
Federal Realty Investment Trust	0	2	11	0	2.85

Independence Realty Trust presently has a consensus target price of $20.86, indicating a potential upside of 1.62%. Federal Realty Investment Trust has a consensus target price of $123.46, indicating a potential upside of 17.54%. Given Federal Realty Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Federal Realty Investment Trust is more favorable than Independence Realty Trust.

Summary

Federal Realty Investment Trust beats Independence Realty Trust on 16 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 Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.