Head to Head Analysis: Elme Communities (NYSE:ELME) vs. Independence Realty Trust (NYSE:IRT)

Independence Realty Trust (NYSE:IRT) and Elme Communities (NYSE:ELME) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Dividends

Independence Realty Trust pays an annual dividend of $0.68 per share and has a dividend yield of 4.2%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. Independence Realty Trust pays out 566.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Independence Realty Trust has increased its dividend for 3 consecutive years. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Independence Realty Trust has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Elme Communities has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

88.3% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 87.9% of Elme Communities shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 1.4% of Elme Communities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Independence Realty Trust and Elme Communities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	3	5	0	2.63
Elme Communities	0	5	0	0	2.00

Independence Realty Trust presently has a consensus price target of $22.14, suggesting a potential upside of 35.80%. Elme Communities has a consensus price target of $18.50, suggesting a potential upside of 10.19%. Given Independence Realty Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Independence Realty Trust is more favorable than Elme Communities.

Earnings & Valuation

This table compares Independence Realty Trust and Elme Communities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$640.03 million	5.96	$39.29 million	$0.12	135.88
Elme Communities	$241.93 million	6.12	-$13.10 million	($0.15)	-111.93

Independence Realty Trust has higher revenue and earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Independence Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Independence Realty Trust and Elme Communities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	4.31%	0.78%	0.46%
Elme Communities	-5.78%	-1.33%	-0.78%

Summary

Independence Realty Trust beats Elme Communities on 12 of the 17 factors compared between the two stocks.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.