Head to Head Contrast: Centerspace (CSR) versus The Competition

Centerspace (NYSE:CSR) is one of 57 public companies in the “Residential REITs” industry, but how does it contrast to its peers? We will compare Centerspace to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Volatility and Risk

Centerspace has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Centerspace’s peers have a beta of 0.68, meaning that their average stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Centerspace and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	8	2	0	2.20
Centerspace Competitors	623	3265	3379	147	2.41

Centerspace currently has a consensus price target of $62.50, suggesting a potential upside of 9.11%. As a group, “Residential REITs” companies have a potential upside of 12.05%. Given Centerspace’s peers stronger consensus rating and higher probable upside, analysts plainly believe Centerspace has less favorable growth aspects than its peers.

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.4%. Centerspace pays out 57.6% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.6% and pay out 228.2% of their earnings in the form of a dividend. Centerspace has increased its dividend for 2 consecutive years. Centerspace is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

79.0% of Centerspace shares are held by institutional investors. Comparatively, 55.6% of shares of all “Residential REITs” companies are held by institutional investors. 0.5% of Centerspace shares are held by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Centerspace and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Centerspace	$273.66 million	$17.59 million	10.71
Centerspace Competitors	$780.42 million	$238.42 million	41.72

Centerspace’s peers have higher revenue and earnings than Centerspace. Centerspace 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 Centerspace and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	35.40%	10.82%	4.89%
Centerspace Competitors	11.22%	2.92%	2.58%

Summary

Centerspace peers beat Centerspace on 8 of the 15 factors compared.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.