Critical Comparison: Independence Realty Trust (NYSE:IRT) vs. Regency Centers (NASDAQ:REG)

Independence Realty Trust (NYSE:IRT) and Regency Centers (NASDAQ:REG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Insider & Institutional Ownership

88.3% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 96.1% of Regency Centers shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 1.0% of Regency Centers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Independence Realty Trust has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Regency Centers has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Dividends

Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Regency Centers pays an annual dividend of $2.82 per share and has a dividend yield of 3.8%. Independence Realty Trust pays out 355.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers pays out 133.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Independence Realty Trust and Regency Centers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	2	4	0	2.67
Regency Centers	0	3	8	1	2.83

Independence Realty Trust currently has a consensus target price of $21.33, suggesting a potential upside of 3.46%. Regency Centers has a consensus target price of $78.08, suggesting a potential upside of 5.05%. Given Regency Centers’ stronger consensus rating and higher possible upside, analysts clearly believe Regency Centers is more favorable than Independence Realty Trust.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$640.04 million	7.44	$39.29 million	$0.18	114.56
Regency Centers	$1.45 billion	9.27	$400.39 million	$2.12	35.06

Regency Centers has higher revenue and earnings than Independence Realty Trust. Regency Centers 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 Regency Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	6.15%	1.11%	0.66%
Regency Centers	27.54%	5.91%	3.21%

Summary

Regency Centers beats Independence Realty Trust on 15 of the 16 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 Regency Centers

Regency Centers is a preeminent national owner, operator, and developer of shopping centers located in suburban trade areas with compelling demographics. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.