Independence Realty Trust (NYSE:IRT) and Regency Centers (NASDAQ:REG) Head to Head Analysis

Regency Centers (NASDAQ:REG) and Independence Realty Trust (NYSE:IRT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

96.1% of Regency Centers shares are held by institutional investors. Comparatively, 88.3% of Independence Realty Trust shares are held by institutional investors. 1.0% of Regency Centers shares are held by insiders. Comparatively, 0.6% of Independence Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regency Centers	$1.45 billion	9.57	$400.39 million	$2.12	36.18
Independence Realty Trust	$640.04 million	7.85	$39.29 million	$0.18	120.94

Regency Centers has higher revenue and earnings than Independence Realty Trust. Regency Centers 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Regency Centers	27.54%	5.91%	3.21%
Independence Realty Trust	6.15%	1.11%	0.66%

Dividends

Regency Centers pays an annual dividend of $2.82 per share and has a dividend yield of 3.7%. Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Regency Centers pays out 133.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Regency Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Regency Centers has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Regency Centers and Independence Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regency Centers	0	3	8	1	2.83
Independence Realty Trust	0	2	4	0	2.67

Regency Centers presently has a consensus target price of $78.08, suggesting a potential upside of 1.80%. Independence Realty Trust has a consensus target price of $21.33, suggesting a potential downside of 2.00%. Given Regency Centers’ stronger consensus rating and higher possible upside, research analysts plainly believe Regency Centers is more favorable than Independence Realty Trust.

Summary

Regency Centers beats Independence Realty Trust on 16 of the 17 factors compared between the two stocks.

About Regency Centers

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

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.