Contrasting Equinix (NASDAQ:EQIX) and Independence Realty Trust (NYSE:IRT)

Equinix (NASDAQ:EQIX) and Independence Realty Trust (NYSE:IRT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Volatility & Risk

Equinix has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

94.9% of Equinix shares are held by institutional investors. Comparatively, 88.3% of Independence Realty Trust shares are held by institutional investors. 0.3% of Equinix shares are held by insiders. Comparatively, 0.7% of Independence Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Equinix and Independence Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equinix	$8.19 billion	11.54	$969.18 million	$11.09	88.29
Independence Realty Trust	$660.98 million	7.50	-$17.23 million	$0.27	81.52

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equinix and Independence Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equinix	0	5	14	1	2.80
Independence Realty Trust	0	1	6	0	2.86

Equinix presently has a consensus price target of $952.88, indicating a potential downside of 2.68%. Independence Realty Trust has a consensus price target of $20.43, indicating a potential downside of 7.19%. Given Equinix’s higher possible upside, analysts clearly believe Equinix is more favorable than Independence Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equinix	12.29%	8.34%	3.18%
Independence Realty Trust	-0.03%	-0.01%	N/A

Dividends

Equinix pays an annual dividend of $17.04 per share and has a dividend yield of 1.7%. Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Equinix pays out 153.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust pays out 237.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Equinix beats Independence Realty Trust on 13 of the 17 factors compared between the two stocks.

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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.