Head-To-Head Analysis: Office Properties Income Trust (NASDAQ:OPI) versus United Dominion Realty Trust (NYSE:UDR)

Office Properties Income Trust (NASDAQ:OPI) and United Dominion Realty Trust (NYSE:UDR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Dividends

Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 14.4%. United Dominion Realty Trust pays an annual dividend of $1.72 per share and has a dividend yield of 4.2%. Office Properties Income Trust pays out -1.5% of its earnings in the form of a dividend. United Dominion Realty Trust pays out 491.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Dominion Realty Trust has increased its dividend for 15 consecutive years. Office Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Office Properties Income Trust and United Dominion Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Office Properties Income Trust	-37.13%	-14.53%	-4.74%
United Dominion Realty Trust	7.33%	3.73%	1.18%

Risk & Volatility

Office Properties Income Trust has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, United Dominion Realty Trust has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Office Properties Income Trust and United Dominion Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Office Properties Income Trust	0	0	0	0	0.00
United Dominion Realty Trust	1	9	7	0	2.35

United Dominion Realty Trust has a consensus target price of $46.38, indicating a potential upside of 13.66%. Given United Dominion Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe United Dominion Realty Trust is more favorable than Office Properties Income Trust.

Earnings & Valuation

This table compares Office Properties Income Trust and United Dominion Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Office Properties Income Trust	$501.98 million	0.04	-$136.11 million	($2.75)	-0.10
United Dominion Realty Trust	$1.67 billion	8.09	$89.58 million	$0.35	116.57

United Dominion Realty Trust has higher revenue and earnings than Office Properties Income Trust. Office Properties Income Trust 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.

Institutional & Insider Ownership

64.4% of Office Properties Income Trust shares are held by institutional investors. Comparatively, 97.8% of United Dominion Realty Trust shares are held by institutional investors. 1.8% of Office Properties Income Trust shares are held by insiders. Comparatively, 3.4% of United Dominion Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

United Dominion Realty Trust beats Office Properties Income Trust on 14 of the 17 factors compared between the two stocks.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.

About United Dominion Realty Trust

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.