Head to Head Survey: Essex Property Trust (NYSE:ESS) vs. Canadian Apartment Properties Real Estate Investment Trust (OTCMKTS:CDPYF)

Canadian Apartment Properties Real Estate Investment Trust (OTCMKTS:CDPYF) and Essex Property Trust (NYSE:ESS) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Dividends

Canadian Apartment Properties Real Estate Investment Trust pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Essex Property Trust pays an annual dividend of $9.24 per share and has a dividend yield of 3.8%. Canadian Apartment Properties Real Estate Investment Trust pays out 39.4% of its earnings in the form of a dividend. Essex Property Trust pays out 146.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has raised its dividend for 30 consecutive years. Essex Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Canadian Apartment Properties Real Estate Investment Trust and Essex Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Apartment Properties Real Estate Investment Trust	N/A	N/A	N/A
Essex Property Trust	24.31%	7.10%	3.29%

Earnings & Valuation

This table compares Canadian Apartment Properties Real Estate Investment Trust and Essex Property Trust’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Apartment Properties Real Estate Investment Trust	N/A	N/A	N/A	$2.94	11.63
Essex Property Trust	$1.67 billion	9.41	$405.83 million	$6.31	38.80

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

Analyst Recommendations

This is a summary of recent recommendations for Canadian Apartment Properties Real Estate Investment Trust and Essex Property Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Apartment Properties Real Estate Investment Trust	0	0	1	0	3.00
Essex Property Trust	3	9	6	0	2.17

Canadian Apartment Properties Real Estate Investment Trust currently has a consensus price target of $59.25, indicating a potential upside of 73.60%. Essex Property Trust has a consensus price target of $243.74, indicating a potential downside of 0.44%. Given Canadian Apartment Properties Real Estate Investment Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Canadian Apartment Properties Real Estate Investment Trust is more favorable than Essex Property Trust.

Institutional & Insider Ownership

23.8% of Canadian Apartment Properties Real Estate Investment Trust shares are held by institutional investors. Comparatively, 96.5% of Essex Property Trust shares are held by institutional investors. 3.8% of Essex Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Essex Property Trust beats Canadian Apartment Properties Real Estate Investment Trust on 11 of the 14 factors compared between the two stocks.

About Canadian Apartment Properties Real Estate Investment Trust

CAPREIT is Canada's largest publicly traded provider of quality rental housing. As at December 31, 2023, CAPREIT owns approximately 64,300 residential apartment suites, townhomes and manufactured home community sites that are well-located across Canada and the Netherlands, with approximately $16.5 billion of investment properties in Canada and Europe.

About Essex Property Trust

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development.