Critical Review: Morguard North American Residential Real Estate Investment Trust (MNARF) vs. Its Competitors

Morguard North American Residential Real Estate Investment Trust (OTCMKTS:MNARF) is one of 57 public companies in the “Residential REITs” industry, but how does it contrast to its competitors? We will compare Morguard North American Residential Real Estate Investment Trust to similar companies based on the strength of its institutional ownership, profitability, risk, valuation, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Morguard North American Residential Real Estate Investment Trust and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Morguard North American Residential Real Estate Investment Trust	N/A	N/A	8.36
Morguard North American Residential Real Estate Investment Trust Competitors	$774.70 million	$238.42 million	37.95

Morguard North American Residential Real Estate Investment Trust’s competitors have higher revenue and earnings than Morguard North American Residential Real Estate Investment Trust. Morguard North American Residential Real Estate Investment Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Morguard North American Residential Real Estate Investment Trust pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. Morguard North American Residential Real Estate Investment Trust pays out 43.2% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.5% and pay out 248.5% of their earnings in the form of a dividend. Morguard North American Residential Real Estate Investment Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Morguard North American Residential Real Estate Investment Trust and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Morguard North American Residential Real Estate Investment Trust	0	1	1	0	2.50
Morguard North American Residential Real Estate Investment Trust Competitors	604	3203	3326	145	2.41

As a group, “Residential REITs” companies have a potential upside of 10.57%. Given Morguard North American Residential Real Estate Investment Trust’s competitors higher possible upside, analysts plainly believe Morguard North American Residential Real Estate Investment Trust has less favorable growth aspects than its competitors.

Profitability

This table compares Morguard North American Residential Real Estate Investment Trust and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Morguard North American Residential Real Estate Investment Trust	N/A	N/A	N/A
Morguard North American Residential Real Estate Investment Trust Competitors	21.07%	2.87%	2.13%

Insider & Institutional Ownership

9.6% of Morguard North American Residential Real Estate Investment Trust shares are held by institutional investors. Comparatively, 55.9% of shares of all “Residential REITs” companies are held by institutional investors. 8.5% of shares of all “Residential REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Morguard North American Residential Real Estate Investment Trust competitors beat Morguard North American Residential Real Estate Investment Trust on 9 of the 13 factors compared.

Morguard North American Residential Real Estate Investment Trust Company Profile

The REIT is an unincorporated, open-ended real estate investment trust established under and governed by the laws of the Province of Ontario. The Units of the REIT trade on the Toronto Stock Exchange under the ticker symbol MRG.UN. With a strategic focus on the acquisition of high-quality multi-suite residential properties in Canada and the United States, the REIT maximizes long-term Unit value through active asset and property management. The REIT’s portfolio is comprised of 13,089 residential suites and 229,500 square feet of commercial area (as of October 24, 2023) located in Alberta, Ontario, Colorado, Texas, Louisiana, Illinois, Georgia, Florida, North Carolina, Virginia and Maryland with an appraised value of approximately $4.0 billion at September 30, 2023.