Financial Analysis: First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) vs. Independence Realty Trust (NYSE:IRT)

First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) and Independence Realty Trust (NYSE:IRT) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Profitability

This table compares First Real Estate Investment Trust of New Jersey and Independence Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A
Independence Realty Trust	6.52%	1.22%	0.72%

Earnings and Valuation

This table compares First Real Estate Investment Trust of New Jersey and Independence Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	12.57
Independence Realty Trust	$657.70 million	5.86	$56.56 million	$0.18	90.83

Independence Realty Trust has higher revenue and earnings than First Real Estate Investment Trust of New Jersey. First Real Estate Investment Trust of New Jersey is trading at a lower price-to-earnings ratio than Independence Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for First Real Estate Investment Trust of New Jersey and Independence Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Real Estate Investment Trust of New Jersey	0	0	0	0	0.00
Independence Realty Trust	0	4	7	1	2.75

Independence Realty Trust has a consensus target price of $19.56, suggesting a potential upside of 19.65%. Given Independence Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Independence Realty Trust is more favorable than First Real Estate Investment Trust of New Jersey.

Dividends

First Real Estate Investment Trust of New Jersey pays an annual dividend of $1.56 per share and has a dividend yield of 7.3%. Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.4%. First Real Estate Investment Trust of New Jersey pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Independence Realty Trust has increased its dividend for 3 consecutive years. First Real Estate Investment Trust of New Jersey is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

88.2% of Independence Realty Trust shares are owned by institutional investors. 12.0% of First Real Estate Investment Trust of New Jersey shares are owned by insiders. Comparatively, 0.7% of Independence Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Independence Realty Trust beats First Real Estate Investment Trust of New Jersey on 11 of the 15 factors compared between the two stocks.

About First Real Estate Investment Trust of New Jersey

First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey and New York, with the largest concentration in northern New Jersey.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.