Critical Review: BRT Apartments (BRT) versus Camden Property Trust (CPT)

BRT Apartments (NYSE: BRT) and Camden Property Trust (NYSE:CPT) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Profitability

This table compares BRT Apartments and Camden Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BRT Apartments 12.86% 6.00% 1.47%
Camden Property Trust 16.81% 4.71% 2.50%

Valuation and Earnings

This table compares BRT Apartments and Camden Property Trust’s gross 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 1.78 $13.60 million $0.98 13.69
Camden Property Trust $876.45 million 9.14 $819.82 million $1.64 52.73

Camden Property Trust has higher revenue and earnings than BRT Apartments. BRT Apartments is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

22.1% of BRT Apartments shares are owned by institutional investors. Comparatively, 96.9% of Camden Property Trust shares are owned by institutional investors. 41.9% of BRT Apartments shares are owned by company insiders. Comparatively, 4.7% of Camden Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

BRT Apartments has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for BRT Apartments and Camden Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRT Apartments 0 1 2 0 2.67
Camden Property Trust 0 5 9 0 2.64

BRT Apartments presently has a consensus target price of $11.92, indicating a potential downside of 11.20%. Camden Property Trust has a consensus target price of $93.86, indicating a potential upside of 8.53%. Given Camden Property Trust’s higher probable upside, analysts plainly believe Camden Property Trust is more favorable than BRT Apartments.

Dividends

BRT Apartments pays an annual dividend of $0.72 per share and has a dividend yield of 5.4%. Camden Property Trust pays an annual dividend of $3.00 per share and has a dividend yield of 3.5%. BRT Apartments pays out 73.5% of its earnings in the form of a dividend. Camden Property Trust pays out 182.9% 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 raised 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.

Summary

Camden Property Trust 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.

Camden Property Trust Company Profile

Camden Property Trust is a real estate investment trust (REIT). The Company is engaged in the ownership, management, development, redevelopment, acquisition and construction of multifamily apartment communities. As of December 31, 2016, the Company owned interests in, operated, or were developing 159 multifamily properties, which consisted of 55,366 apartment homes across the United States. The Company also owns land holdings, which it may develop into multifamily communities. The Company’s properties consist of mid-rise buildings or two and three story buildings in a landscaped setting and provide residents with a range of amenities common to multifamily rental properties. The 152 operating properties in which the Company owned interests and operated, as of December 31, 2016, averaged 953 square feet of living area per apartment home. As of December 31, 2016, 137 of its operating properties had over 200 apartment homes.

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