Contrasting Equity Residential (NYSE:EQR) & First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS)

Equity Residential (NYSE:EQR) and First Real Estate Investment Trust of New Jersey (OTCMKTS:FREVS) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

92.7% of Equity Residential shares are held by institutional investors. 1.7% of Equity Residential shares are held by company insiders. Comparatively, 12.0% of First Real Estate Investment Trust of New Jersey shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Equity Residential pays an annual dividend of $2.70 per share and has a dividend yield of 4.5%. First Real Estate Investment Trust of New Jersey pays an annual dividend of $1.56 per share and has a dividend yield of 9.5%. Equity Residential pays out 122.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Real Estate Investment Trust of New Jersey pays out 92.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity Residential has raised its dividend for 3 consecutive years. First Real Estate Investment Trust of New Jersey is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Equity Residential and First Real Estate Investment Trust of New Jersey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity Residential	29.07%	7.43%	4.16%
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Equity Residential and First Real Estate Investment Trust of New Jersey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Residential	0	10	4	0	2.29
First Real Estate Investment Trust of New Jersey	0	0	0	0	N/A

Equity Residential currently has a consensus target price of $65.32, indicating a potential upside of 9.43%. Given Equity Residential’s higher probable upside, research analysts plainly believe Equity Residential is more favorable than First Real Estate Investment Trust of New Jersey.

Valuation & Earnings

This table compares Equity Residential and First Real Estate Investment Trust of New Jersey’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Residential	$2.87 billion	7.88	$835.44 million	$2.20	27.13
First Real Estate Investment Trust of New Jersey	N/A	N/A	N/A	$1.69	9.73

Equity Residential has higher revenue and earnings than First Real Estate Investment Trust of New Jersey. First Real Estate Investment Trust of New Jersey is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.

Summary

Equity Residential beats First Real Estate Investment Trust of New Jersey on 10 of the 13 factors compared between the two stocks.

About Equity Residential

Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 305 properties consisting of 80,683 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.

About First Real Estate Investment Trust of New Jersey

First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey and New York, with the largest concentration in northern New Jersey.