Whitestone REIT (NYSE:WSR) vs. Elme Communities (NYSE:ELME) Head-To-Head Comparison

Elme Communities (NYSE:ELME) and Whitestone REIT (NYSE:WSR) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Dividends

Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.4%. Whitestone REIT pays an annual dividend of $0.49 per share and has a dividend yield of 3.4%. Elme Communities pays out -480.0% of its earnings in the form of a dividend. Whitestone REIT pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Elme Communities and Whitestone REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elme Communities	$227.91 million	6.29	-$52.98 million	($0.15)	-108.66
Whitestone REIT	$152.00 million	4.78	$19.18 million	$0.41	34.98

Whitestone REIT has lower revenue, but higher earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than Whitestone REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Elme Communities and Whitestone REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elme Communities	0	3	1	0	2.25
Whitestone REIT	0	1	3	0	2.75

Elme Communities currently has a consensus price target of $17.33, indicating a potential upside of 6.34%. Whitestone REIT has a consensus price target of $15.00, indicating a potential upside of 4.60%. Given Elme Communities’ higher possible upside, equities analysts plainly believe Elme Communities is more favorable than Whitestone REIT.

Profitability

This table compares Elme Communities and Whitestone REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elme Communities	-5.51%	-1.17%	-0.70%
Whitestone REIT	13.97%	4.98%	1.88%

Risk & Volatility

Elme Communities has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Institutional & Insider Ownership

87.9% of Elme Communities shares are owned by institutional investors. Comparatively, 69.5% of Whitestone REIT shares are owned by institutional investors. 1.2% of Elme Communities shares are owned by insiders. Comparatively, 5.5% of Whitestone REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Whitestone REIT beats Elme Communities on 10 of the 16 factors compared between the two stocks.

About Elme Communities

Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.