Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) and UMH Properties (NYSE:UMH – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Alexandria Real Estate Equities and UMH Properties, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Alexandria Real Estate Equities | 0 | 9 | 2 | 0 | 2.18 |
UMH Properties | 0 | 2 | 3 | 0 | 2.60 |
Alexandria Real Estate Equities presently has a consensus target price of $121.30, suggesting a potential upside of 24.85%. UMH Properties has a consensus target price of $21.25, suggesting a potential upside of 17.89%. Given Alexandria Real Estate Equities’ higher probable upside, research analysts clearly believe Alexandria Real Estate Equities is more favorable than UMH Properties.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Alexandria Real Estate Equities | 10.36% | 1.43% | 0.85% |
UMH Properties | 11.81% | 6.06% | 1.92% |
Earnings & Valuation
This table compares Alexandria Real Estate Equities and UMH Properties”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Alexandria Real Estate Equities | $3.05 billion | 5.51 | $322.95 million | $1.80 | 53.98 |
UMH Properties | $235.66 million | 6.03 | $8.01 million | $0.13 | 138.65 |
Alexandria Real Estate Equities has higher revenue and earnings than UMH Properties. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than UMH Properties, indicating that it is currently the more affordable of the two stocks.
Dividends
Alexandria Real Estate Equities pays an annual dividend of $5.28 per share and has a dividend yield of 5.4%. UMH Properties pays an annual dividend of $0.86 per share and has a dividend yield of 4.8%. Alexandria Real Estate Equities pays out 293.3% 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 661.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
96.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 75.4% of UMH Properties shares are held by institutional investors. 1.2% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 8.6% of UMH Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Alexandria Real Estate Equities has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Summary
UMH Properties beats Alexandria Real Estate Equities on 9 of the 17 factors compared between the two stocks.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
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
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