Analyzing BRT Realty Trust (BRT) & Its Rivals

BRT Realty Trust (NYSE: BRT) is one of 45 publicly-traded companies in the “Residential REITs” industry, but how does it weigh in compared to its peers? We will compare BRT Realty Trust to similar companies based on the strength of its earnings, profitability, dividends, analyst recommendations, risk, institutional ownership and valuation.

Institutional and Insider Ownership

21.8% of BRT Realty Trust shares are held by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are held by institutional investors. 41.9% of BRT Realty Trust shares are held by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares BRT Realty Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BRT Realty Trust 10.81% 5.07% 1.24%
BRT Realty Trust Competitors 25.71% 5.41% 2.03%

Risk and Volatility

BRT Realty Trust has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, BRT Realty Trust’s peers have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Dividends

BRT Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.2%. BRT Realty Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.5% and pay out 158.8% of their earnings in the form of a dividend. BRT Realty Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares BRT Realty Trust and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
BRT Realty Trust $94.26 million $31.28 million 12.56
BRT Realty Trust Competitors $721.30 million $355.95 million -38.48

BRT Realty Trust’s peers have higher revenue and earnings than BRT Realty Trust. BRT Realty Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for BRT Realty Trust and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRT Realty Trust 0 1 2 0 2.67
BRT Realty Trust Competitors 187 1229 1283 31 2.42

BRT Realty Trust currently has a consensus target price of $11.13, indicating a potential upside of 10.70%. As a group, “Residential REITs” companies have a potential upside of 22.71%. Given BRT Realty Trust’s peers higher possible upside, analysts clearly believe BRT Realty Trust has less favorable growth aspects than its peers.

Summary

BRT Realty Trust peers beat BRT Realty Trust on 9 of the 15 factors compared.

About BRT Realty Trust

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.

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