Essex Property Trust (ESS) and Silver Bay Realty Trust Corp (SBY) Critical Review
Essex Property Trust (NYSE: ESS) and Silver Bay Realty Trust Corp (NYSE:SBY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
This table compares Essex Property Trust and Silver Bay Realty Trust Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Essex Property Trust||38.33%||8.03%||4.11%|
|Silver Bay Realty Trust Corp||-5.71%||-1.42%||-0.61%|
Risk & Volatility
Essex Property Trust has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Silver Bay Realty Trust Corp has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Essex Property Trust and Silver Bay Realty Trust Corp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Essex Property Trust||2||9||7||0||2.28|
|Silver Bay Realty Trust Corp||0||3||0||0||2.00|
Essex Property Trust presently has a consensus price target of $266.57, indicating a potential upside of 5.62%. Silver Bay Realty Trust Corp has a consensus price target of $20.25, indicating a potential downside of 5.77%. Given Essex Property Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Essex Property Trust is more favorable than Silver Bay Realty Trust Corp.
Insider and Institutional Ownership
99.5% of Essex Property Trust shares are held by institutional investors. Comparatively, 73.6% of Silver Bay Realty Trust Corp shares are held by institutional investors. 3.3% of Essex Property Trust shares are held by insiders. Comparatively, 7.3% of Silver Bay Realty Trust Corp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Essex Property Trust pays an annual dividend of $7.00 per share and has a dividend yield of 2.8%. Silver Bay Realty Trust Corp pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Essex Property Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust Corp pays out -325.0% of its earnings in the form of a dividend. Essex Property Trust has increased its dividend for 3 consecutive years and Silver Bay Realty Trust Corp has increased its dividend for 23 consecutive years.
Valuation & Earnings
This table compares Essex Property Trust and Silver Bay Realty Trust Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Essex Property Trust||$1.37 billion||12.16||$932.45 million||$7.78||32.44|
|Silver Bay Realty Trust Corp||N/A||N/A||N/A||($0.16)||-134.31|
Essex Property Trust has higher revenue and earnings than Silver Bay Realty Trust Corp. Silver Bay Realty Trust Corp is trading at a lower price-to-earnings ratio than Essex Property Trust, indicating that it is currently the more affordable of the two stocks.
Essex Property Trust beats Silver Bay Realty Trust Corp on 10 of the 14 factors compared between the two stocks.
Essex Property Trust Company Profile
Essex Property Trust, Inc. is a self-administered and self-managed real estate investment trust. The Company is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities, located along the West Coast. Its segments include Southern California, Northern California, Seattle Metro and Other real estate assets. The Company owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the Operating Partnership). Its properties include Mio, Form 15, Emerson Valley Village and Ashton Sherman Village. As of December 31, 2016, it owned or held an interest in 245 communities, aggregating 59,645 apartment homes, excluding its ownership in preferred equity investments, as well as two operating commercial buildings (totaling approximately 140,564 square feet), and six active development projects with 2,223 apartment homes in various stages of development.
Silver Bay Realty Trust Corp Company Profile
Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.
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