United Development Funding IV (OTCMKTS:UDFI) & UMH Properties (NYSE:UMH) Financial Review

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

Analyst Recommendations

This is a summary of current ratings and target prices for United Development Funding IV and UMH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Development Funding IV	0	0	0	0	N/A
UMH Properties	0	2	2	0	2.50

UMH Properties has a consensus target price of $19.00, suggesting a potential upside of 17.00%. Given UMH Properties’ higher probable upside, analysts plainly believe UMH Properties is more favorable than United Development Funding IV.

Earnings and Valuation

This table compares United Development Funding IV and UMH Properties’ gross 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
UMH Properties	$220.93 million	5.10	$8.01 million	($0.15)	-108.26

UMH Properties has higher revenue and earnings than United Development Funding IV.

Profitability

This table compares United Development Funding IV and UMH Properties’ 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
UMH Properties	3.55%	2.05%	0.56%

Insider and Institutional Ownership

75.4% of UMH Properties shares are owned by institutional investors. 0.5% of United Development Funding IV shares are owned by company insiders. Comparatively, 9.1% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

UMH Properties beats United Development Funding IV on 8 of the 8 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 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