Head to Head Analysis: Equity Residential (EQR) & Silver Bay Realty Trust (NYSE:SBY)
Silver Bay Realty Trust (NYSE: SBY) and Equity Residential (NYSE:EQR) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Silver Bay Realty Trust pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. Equity Residential pays an annual dividend of $2.02 per share and has a dividend yield of 3.3%. Silver Bay Realty Trust pays out -742.9% of its earnings in the form of a dividend. Equity Residential pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Bay Realty Trust has increased its dividend for 4 consecutive years.
This table compares Silver Bay Realty Trust 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|
|Silver Bay Realty Trust||N/A||N/A||N/A||($0.07)||-307.00|
|Equity Residential||$2.43 billion||9.32||$4.29 billion||$2.04||30.17|
Equity Residential has higher revenue and earnings than Silver Bay Realty Trust. Silver Bay Realty Trust is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Silver Bay Realty Trust and Equity Residential, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Silver Bay Realty Trust||0||3||0||0||2.00|
Silver Bay Realty Trust currently has a consensus price target of $20.25, indicating a potential downside of 5.77%. Equity Residential has a consensus price target of $68.69, indicating a potential upside of 11.62%. Given Equity Residential’s stronger consensus rating and higher probable upside, analysts clearly believe Equity Residential is more favorable than Silver Bay Realty Trust.
Institutional and Insider Ownership
73.6% of Silver Bay Realty Trust shares are owned by institutional investors. Comparatively, 94.1% of Equity Residential shares are owned by institutional investors. 7.3% of Silver Bay Realty Trust shares are owned by company insiders. Comparatively, 3.8% of Equity Residential shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Silver Bay Realty Trust and Equity Residential’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Silver Bay Realty Trust||-5.71%||-1.42%||-0.61%|
Equity Residential beats Silver Bay Realty Trust on 11 of the 14 factors compared between the two stocks.
Silver Bay Realty Trust Company Profile
Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.
Equity Residential Company Profile
Equity Residential is a real estate investment trust. The Company’s primary business is the acquisition, development and management of multifamily residential properties. Its segments include Boston, New York, Washington D.C., Southern California, San Francisco, Seattle and Other Markets. Southern California includes Los Angeles, San Diego and Orange County. Other Markets includes Phoenix. It is engaged in leasing of apartment units to residents. It focuses on rental apartment properties in urban and high-density suburban coastal gateway markets. As of December 31, 2016, the Company owned 302 properties located in 10 states and the District of Columbia consisting of 77,458 apartment units. The Company’s projects include The Alton, 455 Eye Street, 855 Brannan, Cascade, One Henry Adams, 340 Fremont and Vista 99. ERP Operating Limited Partnership (ERPOP) conducts the multifamily residential property business of Equity Residential.
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