Analyzing EPR Properties (NYSE:EPR) and BRT Apartments (NYSE:BRT)

BRT Apartments (NYSE:BRT) and EPR Properties (NYSE:EPR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Dividends

BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 5.6%. EPR Properties pays an annual dividend of $3.54 per share and has a dividend yield of 7.0%. BRT Apartments pays out -188.7% of its earnings in the form of a dividend. EPR Properties pays out 221.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares BRT Apartments and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRT Apartments	-9.94%	-4.33%	-1.34%
EPR Properties	28.87%	8.22%	3.52%

Insider and Institutional Ownership

29.1% of BRT Apartments shares are held by institutional investors. Comparatively, 74.7% of EPR Properties shares are held by institutional investors. 40.2% of BRT Apartments shares are held by insiders. Comparatively, 2.1% of EPR Properties shares are held by 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.

Volatility and Risk

BRT Apartments has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Valuation & Earnings

This table compares BRT Apartments and EPR Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRT Apartments	$95.17 million	3.52	$3.87 million	($0.53)	-33.63
EPR Properties	$641.00 million	6.01	$173.05 million	$1.60	31.64

EPR Properties has higher revenue and earnings than BRT Apartments. BRT Apartments is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for BRT Apartments and EPR Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRT Apartments	0	1	2	0	2.67
EPR Properties	2	4	2	1	2.22

BRT Apartments currently has a consensus target price of $23.00, suggesting a potential upside of 29.03%. EPR Properties has a consensus target price of $50.13, suggesting a potential downside of 0.98%. Given BRT Apartments’ stronger consensus rating and higher possible upside, equities analysts plainly believe BRT Apartments is more favorable than EPR Properties.

Summary

EPR Properties beats BRT Apartments on 12 of the 16 factors compared between the two stocks.

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.