Analyzing Centerspace (CSR) & Its Competitors

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

Volatility & Risk

Centerspace has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Centerspace’s rivals have a beta of 0.69, suggesting that their average share price is 31% less volatile than the S&P 500.

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.3%. Centerspace pays out 244.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 4.7% and pay out 248.1% 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 rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are owned by institutional investors. 0.5% of Centerspace shares are owned by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are owned by company 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Centerspace and its rivals, 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	618	3257	3373	147	2.41

Centerspace presently has a consensus price target of $62.50, indicating a potential upside of 6.85%. As a group, “Residential REITs” companies have a potential upside of 14.29%. Given Centerspace’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Centerspace has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Centerspace and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Centerspace	$273.66 million	$17.59 million	46.42
Centerspace Competitors	$774.73 million	$238.42 million	37.46

Centerspace’s rivals have higher revenue and earnings than Centerspace. Centerspace is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Centerspace and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	7.97%	2.58%	1.11%
Centerspace Competitors	8.72%	2.05%	2.18%

Summary

Centerspace rivals beat Centerspace on 9 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.