Comparing Federal Realty Investment Trust (NYSE:FRT) & Independence Realty Trust (NYSE:IRT)

Federal Realty Investment Trust (NYSE:FRT) and Independence Realty Trust (NYSE:IRT) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	24.67%	10.01%	3.47%
Independence Realty Trust	-0.03%	-0.01%	N/A

Volatility and Risk

Federal Realty Investment Trust has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Independence Realty Trust has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 4.0%. Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. Federal Realty Investment Trust pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Federal Realty Investment Trust and Independence Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	1	11	0	2.92
Independence Realty Trust	0	2	5	0	2.71

Federal Realty Investment Trust currently has a consensus target price of $124.17, indicating a potential upside of 11.85%. Independence Realty Trust has a consensus target price of $20.86, indicating a potential upside of 4.70%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, research analysts plainly believe Federal Realty Investment Trust is more favorable than Independence Realty Trust.

Earnings and Valuation

This table compares Federal Realty Investment Trust and Independence Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.13 billion	8.13	$236.99 million	$3.44	32.27
Independence Realty Trust	$660.98 million	6.78	-$17.23 million	N/A	N/A

Federal Realty Investment Trust has higher revenue and earnings than Independence Realty Trust.

Insider and Institutional Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 88.3% of Independence Realty Trust shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 0.6% of Independence Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Federal Realty Investment Trust beats Independence Realty Trust on 14 of the 15 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

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.