Cedar Realty Trust (NYSE:CDR) and Equity Residential (NYSE:EQR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Earnings and Valuation
This table compares Cedar Realty Trust and Equity Residential’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cedar Realty Trust||$144.08 million||1.74||$1.08 million||$0.45||6.24|
|Equity Residential||$2.70 billion||11.89||$970.38 million||$3.49||24.77|
Risk & Volatility
Cedar Realty Trust has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Equity Residential has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Cedar Realty Trust and Equity Residential, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cedar Realty Trust||1||0||1||0||2.00|
Cedar Realty Trust currently has a consensus price target of $3.50, indicating a potential upside of 24.56%. Equity Residential has a consensus price target of $83.57, indicating a potential downside of 3.34%. Given Cedar Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Cedar Realty Trust is more favorable than Equity Residential.
Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 7.1%. Equity Residential pays an annual dividend of $2.27 per share and has a dividend yield of 2.6%. Cedar Realty Trust pays out 44.4% of its earnings in the form of a dividend. Equity Residential pays out 65.0% 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. Equity Residential has increased its dividend for 2 consecutive years. Cedar Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
87.8% of Cedar Realty Trust shares are owned by institutional investors. Comparatively, 89.3% of Equity Residential shares are owned by institutional investors. 4.5% of Cedar Realty Trust shares are owned by company insiders. Comparatively, 2.4% of Equity Residential shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Cedar Realty Trust and Equity Residential’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cedar Realty Trust||0.75%||0.29%||0.09%|
Equity Residential beats Cedar Realty Trust on 10 of the 16 factors compared between the two stocks.
About Cedar Realty Trust
Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership, operation and redevelopment of grocery-anchored shopping centers in high-density urban markets from Washington, D.C. to Boston. The Company's portfolio (excluding properties treated as "held for sale") comprises 58 properties, with approximately 8.7 million square feet of gross leasable area.
About Equity Residential
Equity Residential is an S&P 500 company focused on the acquisition, development and management of rental apartment properties located in urban and high-density suburban markets where today's renters want to live, work and play. Equity Residential owns or has investments in 307 properties consisting of 79,482 apartment units, primarily located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.
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