Centerspace (NYSE:CSR – Get Free Report) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings for Centerspace and InterRent Real Estate Investment Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Centerspace | 0 | 3 | 4 | 0 | 2.57 |
| InterRent Real Estate Investment Trust | 0 | 0 | 0 | 0 | N/A |
Centerspace presently has a consensus target price of $65.57, indicating a potential upside of 14.76%. InterRent Real Estate Investment Trust has a consensus target price of $17.44, indicating a potential upside of 74.20%. Given InterRent Real Estate Investment Trust’s higher possible upside, analysts plainly believe InterRent Real Estate Investment Trust is more favorable than Centerspace.
Dividends
Centerspace pays an annual dividend of $2.92 per share and has a dividend yield of 5.1%. InterRent Real Estate Investment Trust pays an annual dividend of $0.18 per share and has a dividend yield of 1.8%. Centerspace pays out 125.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InterRent Real Estate Investment Trust pays out 38.3% of its earnings in the form of a dividend. Centerspace has raised its dividend for 1 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Centerspace has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, InterRent Real Estate Investment Trust has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Insider and Institutional Ownership
79.0% of Centerspace shares are held by institutional investors. 0.9% of Centerspace shares are held by insiders. Comparatively, 6.8% of InterRent Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Centerspace and InterRent Real Estate Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Centerspace | 15.81% | 4.76% | 2.15% |
| InterRent Real Estate Investment Trust | 38.61% | 3.54% | 2.07% |
Valuation and Earnings
This table compares Centerspace and InterRent Real Estate Investment Trust’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Centerspace | $261.31 million | 3.29 | $41.97 million | $2.33 | 24.52 |
| InterRent Real Estate Investment Trust | $175.65 million | 8.25 | $68.32 million | $0.47 | 21.30 |
InterRent Real Estate Investment Trust has lower revenue, but higher earnings than Centerspace. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Centerspace, indicating that it is currently the more affordable of the two stocks.
Summary
Centerspace beats InterRent Real Estate Investment Trust on 10 of the 16 factors compared between the two stocks.
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.
About InterRent Real Estate Investment Trust
InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.
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