Contrasting Education Realty Trust (EDR) and Its Rivals

Education Realty Trust (NYSE: EDR) is one of 42 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its peers? We will compare Education Realty Trust to related businesses based on the strength of its dividends, risk, profitability, analyst recommendations, earnings, institutional ownership and valuation.

Institutional and Insider Ownership

74.3% of shares of all “Residential REITs” companies are held by institutional investors. 0.5% of Education Realty Trust shares are held by insiders. Comparatively, 10.1% of shares of all “Residential REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Education Realty Trust and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Education Realty Trust $288.97 million $44.92 million 77.59
Education Realty Trust Competitors $673.41 million $325.74 million 132.61

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

Profitability

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

Net Margins Return on Equity Return on Assets
Education Realty Trust 11.33% 2.01% 1.32%
Education Realty Trust Competitors 20.47% 4.10% 1.59%

Analyst Ratings

This is a breakdown of current ratings and price targets for Education Realty Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Education Realty Trust 1 5 6 0 2.42
Education Realty Trust Competitors 187 1232 1257 32 2.42

Education Realty Trust currently has a consensus target price of $41.60, indicating a potential upside of 16.56%. As a group, “Residential REITs” companies have a potential upside of 7.81%. Given Education Realty Trust’s higher possible upside, equities analysts clearly believe Education Realty Trust is more favorable than its peers.

Dividends

Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 4.4%. Education Realty Trust pays out 339.1% 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 154.6% of their earnings in the form of a dividend. Education Realty Trust has increased its dividend for 6 consecutive years.

Risk and Volatility

Education Realty Trust has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Education Realty Trust’s peers have a beta of 0.51, meaning that their average stock price is 49% less volatile than the S&P 500.

Summary

Education Realty Trust peers beat Education Realty Trust on 12 of the 15 factors compared.

Education Realty Trust Company Profile

Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.

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