Financial Comparison: United Development Funding IV (OTCMKTS:UDFI) versus Veris Residential (NYSE:VRE)

United Development Funding IV (OTCMKTS:UDFI) and Veris Residential (NYSE:VRE) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Earnings and Valuation

This table compares United Development Funding IV and Veris Residential”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Development Funding IV	N/A	N/A	N/A	N/A	N/A
Veris Residential	$289.57 million	5.34	-$107.26 million	($0.17)	-97.88

United Development Funding IV has higher earnings, but lower revenue than Veris Residential.

Institutional & Insider Ownership

93.0% of Veris Residential shares are owned by institutional investors. 0.5% of United Development Funding IV shares are owned by insiders. Comparatively, 16.0% of Veris Residential shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares United Development Funding IV and Veris Residential’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Development Funding IV	N/A	N/A	N/A
Veris Residential	-5.70%	-4.97%	-2.02%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for United Development Funding IV and Veris Residential, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Development Funding IV	0	0	0	0	0.00
Veris Residential	0	2	2	0	2.50

Veris Residential has a consensus target price of $18.25, indicating a potential upside of 9.68%. Given Veris Residential’s stronger consensus rating and higher possible upside, analysts plainly believe Veris Residential is more favorable than United Development Funding IV.

Summary

Veris Residential beats United Development Funding IV on 6 of the 9 factors compared between the two stocks.

About United Development Funding IV

United Development Funding IV invests in secured loans for the acquisition and development of land into single-family home lots, and the construction of model and new single-family homes. It also makes equity investments in residential real estate. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. United Development Funding IV was founded in 2008 and is headquartered in Grapevine, Texas.

About Veris Residential

Veris Residential, Inc. is a forward-thinking, environmentally and socially conscious real estate investment trust (REIT) that primarily owns, operates, acquires and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principle; a best-in-class and sustainable approach to operations; and an inclusive culture based on equality and meritocratic empowerment.