Equity Residential (EQR) vs. UMH Properties (UMH) Head-To-Head Review
Equity Residential (NYSE: EQR) and UMH Properties (NYSE:UMH) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
This is a summary of current ratings and price targets for Equity Residential and UMH Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Equity Residential currently has a consensus price target of $69.15, indicating a potential upside of 1.22%. UMH Properties has a consensus price target of $18.88, indicating a potential upside of 24.18%. Given UMH Properties’ stronger consensus rating and higher possible upside, analysts clearly believe UMH Properties is more favorable than Equity Residential.
Risk and Volatility
Equity Residential has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Equity Residential pays an annual dividend of $2.02 per share and has a dividend yield of 3.0%. UMH Properties pays an annual dividend of $0.72 per share and has a dividend yield of 4.7%. Equity Residential pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out -327.3% of its earnings in the form of a dividend. UMH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Equity Residential and UMH Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
91.6% of Equity Residential shares are owned by institutional investors. Comparatively, 53.6% of UMH Properties shares are owned by institutional investors. 3.8% of Equity Residential shares are owned by company insiders. Comparatively, 11.6% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Equity Residential and UMH Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Equity Residential||$2.43 billion||10.35||$4.29 billion||$2.04||33.49|
|UMH Properties||$99.21 million||5.35||$11.53 million||($0.22)||-69.09|
Equity Residential has higher revenue and earnings than UMH Properties. UMH Properties is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
Equity Residential beats UMH Properties on 9 of the 16 factors compared between the two stocks.
About Equity Residential
Equity Residential is a real estate investment trust. The Company’s primary business is the acquisition, development and management of multifamily residential properties. Its segments include Boston, New York, Washington D.C., Southern California, San Francisco, Seattle and Other Markets. Southern California includes Los Angeles, San Diego and Orange County. Other Markets includes Phoenix. It is engaged in leasing of apartment units to residents. It focuses on rental apartment properties in urban and high-density suburban coastal gateway markets. As of December 31, 2016, the Company owned 302 properties located in 10 states and the District of Columbia consisting of 77,458 apartment units. The Company’s projects include The Alton, 455 Eye Street, 855 Brannan, Cascade, One Henry Adams, 340 Fremont and Vista 99. ERP Operating Limited Partnership (ERPOP) conducts the multifamily residential property business of Equity Residential.
About UMH Properties
UMH Properties, Inc. (UMH) is a real estate investment trust (REIT). The Company’s primary business is the ownership and operation of manufactured home communities, including leasing manufactured home sites to private manufactured home owners. The Company also leases homes to residents, and through its taxable REIT subsidiary, UMH Sales and Finance, Inc. (S&F), conducts manufactured home sales in its communities. As of May 31, 2017, the Company owned 107 manufactured home communities consisting of approximately 19,400 developed sites. The communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana and Michigan. In connection with the operation of its communities, UMH also leases homes to prospective tenants. As of December 31, 2016, UMH owned a total of 4,700 rental homes, representing approximately 26% of its developed sites. These rental homes are owned by the Company and rented to residents.
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