Financial Analysis: BRT Apartments (BRT) & Mid-America Apartment Communities (MAA)
BRT Apartments (NYSE: BRT) and Mid-America Apartment Communities (NYSE:MAA) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
This table compares BRT Apartments and Mid-America Apartment Communities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mid-America Apartment Communities||21.42%||4.99%||2.84%|
BRT Apartments has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.
Insider & Institutional Ownership
20.9% of BRT Apartments shares are owned by institutional investors. Comparatively, 92.2% of Mid-America Apartment Communities shares are owned by institutional investors. 42.9% of BRT Apartments shares are owned by company insiders. Comparatively, 1.3% of Mid-America Apartment Communities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for BRT Apartments and Mid-America Apartment Communities, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mid-America Apartment Communities||0||5||8||0||2.62|
BRT Apartments presently has a consensus target price of $12.08, suggesting a potential upside of 13.03%. Mid-America Apartment Communities has a consensus target price of $105.64, suggesting a potential upside of 19.03%. Given Mid-America Apartment Communities’ higher possible upside, analysts clearly believe Mid-America Apartment Communities is more favorable than BRT Apartments.
BRT Apartments pays an annual dividend of $0.72 per share and has a dividend yield of 6.7%. Mid-America Apartment Communities pays an annual dividend of $3.69 per share and has a dividend yield of 4.2%. BRT Apartments pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mid-America Apartment Communities pays out 129.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRT Apartments has increased its dividend for 7 consecutive years. BRT Apartments is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares BRT Apartments and Mid-America Apartment Communities’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BRT Apartments||$105.77 million||1.43||$13.60 million||$0.30||35.63|
|Mid-America Apartment Communities||$1.53 billion||6.60||$328.37 million||$2.86||31.03|
Mid-America Apartment Communities has higher revenue and earnings than BRT Apartments. Mid-America Apartment Communities is trading at a lower price-to-earnings ratio than BRT Apartments, indicating that it is currently the more affordable of the two stocks.
Mid-America Apartment Communities beats BRT Apartments on 11 of the 17 factors compared between the two stocks.
BRT Apartments Company Profile
BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.
Mid-America Apartment Communities Company Profile
Mid-America Apartment Communities, Inc. is a multifamily focused, self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, acquires and develops apartment communities primarily located in the Southeast and Southwest regions of the United States. It operates through three segments: Large market same store, Secondary market same store and Non-Same Store and Other. Its Large market same store communities are communities in markets with a population of at least one million and at least 1% of the total public multifamily REIT units that it has owned. Its Secondary market same store communities are communities in markets with populations of more than one million but less than 1% of the total public multifamily REIT units or markets with populations of less than one million that it has owned. Its Non-same store communities and other includes recent acquisitions and communities in development or lease-up communities.
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