Reviewing 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 better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Valuation & Earnings

This table compares BRT Apartments and Mid-America Apartment Communities’ 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.

Institutional and Insider Ownership

20.5% of BRT Apartments shares are held by institutional investors. Comparatively, 93.4% of Mid-America Apartment Communities shares are held by institutional investors. 42.9% of BRT Apartments shares are held by company insiders. Comparatively, 1.3% of Mid-America Apartment Communities shares are held 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BRT Apartments and Mid-America Apartment Communities, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BRT Apartments 0 1 2 0 2.67
Mid-America Apartment Communities 0 5 8 0 2.62

BRT Apartments currently has a consensus price target of $12.08, indicating a potential upside of 13.03%. Mid-America Apartment Communities has a consensus price target of $105.64, indicating 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.

Profitability

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
BRT Apartments 3.85% 1.80% 0.43%
Mid-America Apartment Communities 21.42% 4.99% 2.84%

Risk & Volatility

BRT Apartments has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Dividends

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 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

Mid-America Apartment Communities beats BRT Apartments on 12 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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