Comparing Altisource Residential Corporation (RESI) & United Dominion Realty Trust (UDR)
Altisource Residential Corporation (NYSE: RESI) and United Dominion Realty Trust (NYSE:UDR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Volatility and Risk
Altisource Residential Corporation has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500. Comparatively, United Dominion Realty Trust has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Altisource Residential Corporation and United Dominion Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Altisource Residential Corporation||0||4||4||0||2.50|
|United Dominion Realty Trust||2||9||4||0||2.13|
Altisource Residential Corporation currently has a consensus target price of $15.57, suggesting a potential upside of 42.86%. United Dominion Realty Trust has a consensus target price of $39.10, suggesting a potential upside of 0.26%. Given Altisource Residential Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Altisource Residential Corporation is more favorable than United Dominion Realty Trust.
Altisource Residential Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 5.5%. United Dominion Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 3.2%. Altisource Residential Corporation pays out -14.4% of its earnings in the form of a dividend. United Dominion Realty Trust pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altisource Residential Corporation has increased its dividend for 3 consecutive years and United Dominion Realty Trust has increased its dividend for 7 consecutive years. Altisource Residential Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Altisource Residential Corporation and United Dominion Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Altisource Residential Corporation||$59.21 million||9.82||-$88.76 million||($4.16)||-2.62|
|United Dominion Realty Trust||$979.22 million||10.66||$616.47 million||$1.10||35.45|
United Dominion Realty Trust has higher revenue and earnings than Altisource Residential Corporation. Altisource Residential Corporation is trading at a lower price-to-earnings ratio than United Dominion Realty Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
73.5% of Altisource Residential Corporation shares are owned by institutional investors. Comparatively, 97.6% of United Dominion Realty Trust shares are owned by institutional investors. 0.5% of Altisource Residential Corporation shares are owned by company insiders. Comparatively, 3.1% of United Dominion Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Altisource Residential Corporation and United Dominion Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Altisource Residential Corporation||-378.17%||-21.82%||-8.37%|
|United Dominion Realty Trust||30.74%||10.40%||3.97%|
United Dominion Realty Trust beats Altisource Residential Corporation on 10 of the 15 factors compared between the two stocks.
About Altisource Residential Corporation
Altisource Residential Corporation is a real estate investment trust (REIT). The Company focuses on acquiring, owning and managing single-family rental (SFR) properties throughout the United States. The Company conducts its activities through its subsidiary, Altisource Residential, L.P., and its subsidiaries. The Company also converts a portion of the real estate owned (REO) properties that it acquires through resolution of its mortgage loans into SFR properties. The Company has also entered into property management service agreements with two third-party property managers: Altisource Portfolio Solutions, SA (ASPS) and Main Street Renewal, LLC (MSR), to provide, among other things, leasing and lease management, operations, maintenance, repair and property management services in respect of its SFR portfolios. As of December 31, 2016, the Company had 10,533 properties, consisting of 9,939 properties held for use and 594 held for sale.
About United Dominion Realty Trust
UDR, Inc. is a self-administered real estate investment trust. The Company owns, operates, acquires, renovates, develops, redevelops, disposes of and manages multifamily apartment communities generally located in various markets across the United States. The Company’s segments are Same-Store Communities and Non-Mature Communities/Other. As of December 31, 2016, the Company’s consolidated real estate portfolio included 127 communities located in 18 markets, with a total of 39,454 completed apartment homes. As of December 31, 2016, the Company also had an ownership interest in 27 communities containing 6,849 apartment homes through unconsolidated joint ventures or partnerships. As of December 31, 2016, the Company’s properties were in various locations, such as Orange County, San Francisco and Los Angeles in California; Seattle, Washington; Richmond, Virginia; Baltimore, Maryland; Orlando and Tampa in Florida; Nashville, Tennessee, and Dallas and Austin in Texas.
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