Analyzing InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) and UMH Properties (NYSE:UMH)

InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) and UMH Properties (NYSE:UMH) are both small-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Volatility & Risk

InterRent Real Estate Investment Trust has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Dividends

InterRent Real Estate Investment Trust pays an annual dividend of $0.17 per share and has a dividend yield of 1.8%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 6.0%. InterRent Real Estate Investment Trust pays out 566.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out 1,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 4 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares InterRent Real Estate Investment Trust and UMH Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterRent Real Estate Investment Trust	$178.28 million	7.46	$13.24 million	$0.03	317.00
UMH Properties	$261.75 million	4.88	$26.50 million	$0.05	298.16

UMH Properties has higher revenue and earnings than InterRent Real Estate Investment Trust. UMH Properties is trading at a lower price-to-earnings ratio than InterRent Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

75.4% of UMH Properties shares are owned by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are owned by company insiders. Comparatively, 8.3% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares InterRent Real Estate Investment Trust and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterRent Real Estate Investment Trust	1.81%	0.20%	0.11%
UMH Properties	9.04%	4.47%	1.47%

Analyst Ratings

This is a summary of current ratings and target prices for InterRent Real Estate Investment Trust and UMH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterRent Real Estate Investment Trust	1	0	0	0	1.00
UMH Properties	0	2	2	1	2.80

UMH Properties has a consensus target price of $17.25, suggesting a potential upside of 15.71%. Given UMH Properties’ stronger consensus rating and higher probable upside, analysts clearly believe UMH Properties is more favorable than InterRent Real Estate Investment Trust.

Summary

UMH Properties beats InterRent Real Estate Investment Trust on 16 of the 18 factors compared between the two stocks.

About InterRent Real Estate Investment Trust

InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate