Head-To-Head Comparison: First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) & Independence Realty Trust (NYSE:IRT)

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

Profitability

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

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

Analyst Ratings

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

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

Independence Realty Trust currently has a consensus target price of $19.56, suggesting a potential upside of 13.50%. Given Independence Realty Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Independence Realty Trust is more favorable than First Real Estate Investment Trust of New Jersey.

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. 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 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. 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 has raised 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.

Institutional and Insider Ownership

88.2% of Independence Realty Trust shares are held by institutional investors. 0.7% of Independence Realty Trust shares are held by company insiders. Comparatively, 12.0% of First Real Estate Investment Trust of New Jersey shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Independence Realty Trust and First Real Estate Investment Trust of New Jersey”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$657.70 million	6.18	$56.56 million	$0.18	95.75
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	12.57

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.

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 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.

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.