Reviewing Dynex Capital (NYSE:DX) & InterRent Real Estate Investment Trust (OTCMKTS:IIPZF)

InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) and Dynex Capital (NYSE:DX) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Dividends

InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 4.1%. Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 14.2%. InterRent Real Estate Investment Trust pays out -263.6% of its earnings in the form of a dividend. Dynex Capital pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

InterRent Real Estate Investment Trust has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Valuation & Earnings

This table compares InterRent Real Estate Investment Trust and Dynex Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InterRent Real Estate Investment Trust	$175.65 million	5.98	$68.33 million	($0.11)	-64.64
Dynex Capital	$123.18 million	8.16	-$6.13 million	$1.26	10.06

InterRent Real Estate Investment Trust has higher revenue and earnings than Dynex Capital. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Dynex Capital, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for InterRent Real Estate Investment Trust and Dynex Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InterRent Real Estate Investment Trust	0	0	0	3	4.00
Dynex Capital	0	1	4	0	2.80

Dynex Capital has a consensus price target of $13.56, suggesting a potential upside of 7.04%. Given Dynex Capital’s higher probable upside, analysts plainly believe Dynex Capital is more favorable than InterRent Real Estate Investment Trust.

Profitability

This table compares InterRent Real Estate Investment Trust and Dynex Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InterRent Real Estate Investment Trust	-8.47%	-0.81%	-0.47%
Dynex Capital	28.83%	-4.80%	-0.63%

Institutional and Insider Ownership

38.3% of Dynex Capital shares are held by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are held by insiders. Comparatively, 2.5% of Dynex Capital shares are held 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.

Summary

Dynex Capital beats InterRent Real Estate Investment Trust on 9 of the 17 factors compared between the two stocks.

About InterRent Real Estate Investment Trust

InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.

About Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.