UDR (NYSE:UDR – Get Free Report) and Rayonier (NYSE:RYN – Get Free Report) 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.
Profitability
This table compares UDR and Rayonier’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
UDR | 7.68% | 3.57% | 1.19% |
Rayonier | 15.84% | 2.95% | 1.52% |
Valuation & Earnings
This table compares UDR and Rayonier”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
UDR | $1.63 billion | 9.08 | $444.35 million | $0.37 | 121.11 |
Rayonier | $1.06 billion | 4.27 | $173.49 million | $1.06 | 28.57 |
Risk and Volatility
UDR has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Rayonier has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for UDR and Rayonier, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
UDR | 1 | 8 | 8 | 0 | 2.41 |
Rayonier | 0 | 2 | 0 | 0 | 2.00 |
UDR currently has a consensus target price of $45.18, indicating a potential upside of 0.82%. Rayonier has a consensus target price of $33.00, indicating a potential upside of 8.98%. Given Rayonier’s higher probable upside, analysts plainly believe Rayonier is more favorable than UDR.
Insider & Institutional Ownership
97.8% of UDR shares are held by institutional investors. Comparatively, 89.1% of Rayonier shares are held by institutional investors. 3.7% of UDR shares are held by company insiders. Comparatively, 0.8% of Rayonier 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
UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.8%. Rayonier pays an annual dividend of $1.14 per share and has a dividend yield of 3.8%. UDR pays out 459.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rayonier pays out 107.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 14 consecutive years. UDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
UDR beats Rayonier on 11 of the 17 factors compared between the two stocks.
About UDR
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 communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
About Rayonier
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).
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