Analyzing Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF) & AvalonBay Communities (NYSE:AVB)

AvalonBay Communities (NYSE:AVB) and Dream Residential Real Estate Investment Trust (OTCMKTS:DRREF) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

92.6% of AvalonBay Communities shares are held by institutional investors. 0.5% of AvalonBay Communities shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares AvalonBay Communities and Dream Residential Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AvalonBay Communities	33.33%	8.58%	4.65%
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for AvalonBay Communities and Dream Residential Real Estate Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvalonBay Communities	0	15	3	0	2.17
Dream Residential Real Estate Investment Trust	0	1	0	0	2.00

AvalonBay Communities presently has a consensus target price of $196.80, suggesting a potential upside of 4.97%. Given AvalonBay Communities’ stronger consensus rating and higher possible upside, equities analysts plainly believe AvalonBay Communities is more favorable than Dream Residential Real Estate Investment Trust.

Earnings and Valuation

This table compares AvalonBay Communities and Dream Residential Real Estate 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
AvalonBay Communities	$3.04 billion	8.80	$1.05 billion	$6.12	30.63
Dream Residential Real Estate Investment Trust	N/A	N/A	N/A	N/A	N/A

AvalonBay Communities has higher revenue and earnings than Dream Residential Real Estate Investment Trust.

Summary

AvalonBay Communities beats Dream Residential Real Estate Investment Trust on 9 of the 9 factors compared between the two stocks.

About AvalonBay Communities

AvalonBay Communities, Inc. is a real estate investment trust, which engages in the development, acquisition, ownership, and operation of multifamily communities. It operates through the following segments: Same Store, Other Stabilized, and Development or Redevelopment. The Same Store segment refers to the operating communities that were owned and had stabilized occupancy. The Other Stabilized segment includes all other complete communities that have stabilized occupancy. The Development or Redevelopment segment consists of communities that are under construction. The company was founded by Gilbert M. Meyer in 1978 and is headquartered in Arlington, VA.

About Dream Residential Real Estate Investment Trust

Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States