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Head-To-Head Analysis: Bluerock Residential Growth REIT (NYSE:BRG) and Equity Residential (NYSE:EQR)

Financial News Live ·  Sep 18, 2022 14:21

Bluerock Residential Growth REIT (NYSE:BRG – Get Rating) and Equity Residential (NYSE:EQR – Get Rating) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Insider & Institutional Ownership

61.5% of Bluerock Residential Growth REIT shares are held by institutional investors. Comparatively, 83.9% of Equity Residential shares are held by institutional investors. 7.6% of Bluerock Residential Growth REIT shares are held by company insiders. Comparatively, 2.3% of Equity Residential shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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Dividends

Bluerock Residential Growth REIT pays an annual dividend of $0.65 per share and has a dividend yield of 2.4%. Equity Residential pays an annual dividend of $2.50 per share and has a dividend yield of 3.4%. Equity Residential pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Residential has increased its dividend for 1 consecutive years. Equity Residential is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Bluerock Residential Growth REIT has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Equity Residential has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Bluerock Residential Growth REIT and Equity Residential's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bluerock Residential Growth REIT 9.32% 19.37% 0.40%
Equity Residential 48.06% 11.39% 6.03%

Analyst Recommendations

This is a breakdown of recent ratings for Bluerock Residential Growth REIT and Equity Residential, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bluerock Residential Growth REIT 0 0 0 0 N/A
Equity Residential 1 10 6 0 2.29

Equity Residential has a consensus target price of $84.94, indicating a potential upside of 16.18%. Given Equity Residential's higher possible upside, analysts clearly believe Equity Residential is more favorable than Bluerock Residential Growth REIT.

Valuation & Earnings

This table compares Bluerock Residential Growth REIT and Equity Residential's top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bluerock Residential Growth REIT $220.65 million 3.72 $91.71 million N/A N/A
Equity Residential $2.46 billion 11.16 $1.33 billion $3.33 21.96

Equity Residential has higher revenue and earnings than Bluerock Residential Growth REIT.

Summary

Equity Residential beats Bluerock Residential Growth REIT on 10 of the 15 factors compared between the two stocks.

About Bluerock Residential Growth REIT

(Get Rating)

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. The Company is included in the Russell 2000 and Russell 3000 Indexes. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes. Bluerock Residential Growth REIT, Inc. operates as a subsidiary of Bluerock Multifamily Advisor, LLC.

About Equity Residential

(Get Rating)

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 305 properties consisting of 78,568 apartment units, located in Boston, New York, Washington, D.C., Seattle, San Francisco, Southern California and Denver.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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