Analyzing Monmouth R.E. Inv. (NYSE:MNR) & UDR (NYSE:UDR)

Monmouth R.E. Inv. (NYSE:MNR) and UDR (NYSE:UDR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Risk and Volatility

Monmouth R.E. Inv. has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Monmouth R.E. Inv. and UDR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monmouth R.E. Inv. $158.52 million 8.80 $29.80 million $0.85 16.75
UDR $1.15 billion 8.91 $184.96 million $2.08 16.73

UDR has higher revenue and earnings than Monmouth R.E. Inv.. UDR is trading at a lower price-to-earnings ratio than Monmouth R.E. Inv., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

70.6% of Monmouth R.E. Inv. shares are owned by institutional investors. Comparatively, 98.1% of UDR shares are owned by institutional investors. 3.9% of Monmouth R.E. Inv. shares are owned by insiders. Comparatively, 2.7% of UDR shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Monmouth R.E. Inv. and UDR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth R.E. Inv. 1 1 1 0 2.00
UDR 2 10 4 0 2.13

Monmouth R.E. Inv. currently has a consensus target price of $14.67, suggesting a potential upside of 3.00%. UDR has a consensus target price of $44.87, suggesting a potential upside of 28.93%. Given UDR’s stronger consensus rating and higher probable upside, analysts plainly believe UDR is more favorable than Monmouth R.E. Inv..

Dividends

Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 4.8%. UDR pays an annual dividend of $1.44 per share and has a dividend yield of 4.1%. Monmouth R.E. Inv. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR pays out 69.2% of its earnings in the form of a dividend. Monmouth R.E. Inv. has raised its dividend for 1 consecutive years and UDR has raised its dividend for 10 consecutive years.

Profitability

This table compares Monmouth R.E. Inv. and UDR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth R.E. Inv. 1.56% 0.41% 0.14%
UDR 15.31% 5.63% 2.00%

Summary

UDR beats Monmouth R.E. Inv. on 14 of the 17 factors compared between the two stocks.

Monmouth R.E. Inv. Company Profile

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 113 properties containing a total of approximately 21.8 million rentable square feet, geographically diversified across 30 states. In addition, we own a portfolio of REIT securities.

UDR Company Profile

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of March 31, 2019, UDR owned or had an ownership position in 49,795 apartment homes including 366 homes under development. For over 46 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

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