Reviewing Howard Hughes (NYSE:HHH) & Independence Realty Trust (NYSE:IRT)

Independence Realty Trust (NYSE:IRT) and Howard Hughes (NYSE:HHH) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Profitability

This table compares Independence Realty Trust and Howard Hughes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	-0.03%	-0.01%	N/A
Howard Hughes	6.57%	3.38%	1.03%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Independence Realty Trust and Howard Hughes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	2	5	0	2.71
Howard Hughes	0	0	2	0	3.00

Independence Realty Trust presently has a consensus target price of $20.86, suggesting a potential upside of 8.52%. Howard Hughes has a consensus target price of $82.00, suggesting a potential upside of 7.25%. Given Independence Realty Trust’s higher probable upside, equities research analysts clearly believe Independence Realty Trust is more favorable than Howard Hughes.

Valuation and Earnings

This table compares Independence Realty Trust and Howard Hughes”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$646.12 million	6.70	-$17.23 million	N/A	N/A
Howard Hughes	$1.20 billion	3.21	-$550.95 million	$1.51	50.63

Independence Realty Trust has higher earnings, but lower revenue than Howard Hughes.

Insider and Institutional Ownership

88.3% of Independence Realty Trust shares are held by institutional investors. Comparatively, 93.8% of Howard Hughes shares are held by institutional investors. 0.6% of Independence Realty Trust shares are held by insiders. Comparatively, 33.0% of Howard Hughes shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Independence Realty Trust has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

Howard Hughes beats Independence Realty Trust on 9 of the 13 factors compared between the two stocks.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.