WP Carey (NYSE:WPC) & UDR (NYSE:UDR) Head to Head Analysis

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WP Carey (NYSE:WPC) and UDR (NYSE:UDR) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Dividends

WP Carey pays an annual dividend of $4.18 per share and has a dividend yield of 6.2%. UDR pays an annual dividend of $1.44 per share and has a dividend yield of 4.1%. WP Carey pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR pays out 69.2% of its earnings in the form of a dividend. WP Carey has raised its dividend for 21 consecutive years and UDR has raised its dividend for 10 consecutive years. WP Carey is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

62.2% of WP Carey shares are owned by institutional investors. Comparatively, 98.1% of UDR shares are owned by institutional investors. 1.1% of WP Carey shares are owned by insiders. Comparatively, 2.7% of UDR shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares WP Carey and UDR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WP Carey $1.23 billion 9.52 $305.24 million $5.00 13.49
UDR $1.15 billion 8.90 $184.96 million $2.08 16.70

WP Carey has higher revenue and earnings than UDR. WP Carey is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for WP Carey and UDR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WP Carey 0 2 2 0 2.50
UDR 2 10 4 0 2.13

WP Carey presently has a consensus target price of $72.33, suggesting a potential upside of 7.21%. UDR has a consensus target price of $44.50, suggesting a potential upside of 28.09%. Given UDR’s higher probable upside, analysts clearly believe UDR is more favorable than WP Carey.

Risk & Volatility

WP Carey has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares WP Carey and UDR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WP Carey 28.17% 4.98% 2.44%
UDR 15.31% 5.63% 2.00%

Summary

WP Carey beats UDR on 10 of the 17 factors compared between the two stocks.

WP Carey Company Profile

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $17 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,163 net lease properties covering approximately 131 million square feet. For over four decades, the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

UDR Company Profile

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of March 31, 2019, UDR owned or had an ownership position in 49,795 apartment homes including 366 homes under development. For over 46 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

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