Reviewing Independence Realty Trust (NYSE:IRT) & Service Properties Trust (NASDAQ:SVC)

Independence Realty Trust (NYSE:IRT) and Service Properties Trust (NASDAQ:SVC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Independence Realty Trust and Service Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Independence Realty Trust	-0.03%	-0.01%	N/A
Service Properties Trust	-12.87%	-22.67%	-3.37%

Volatility and Risk

Independence Realty Trust has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500.

Dividends

Independence Realty Trust pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.6%. Service Properties Trust pays out -2.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Independence Realty Trust and Service Properties Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Independence Realty Trust	$660.98 million	6.80	-$17.23 million	N/A	N/A
Service Properties Trust	$1.88 billion	0.22	-$32.78 million	($1.47)	-1.69

Independence Realty Trust has higher earnings, but lower revenue than Service Properties Trust.

Insider & Institutional Ownership

88.3% of Independence Realty Trust shares are owned by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Independence Realty Trust and Service Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Independence Realty Trust	0	2	5	0	2.71
Service Properties Trust	1	0	1	0	2.00

Independence Realty Trust presently has a consensus target price of $21.14, indicating a potential upside of 5.93%. Service Properties Trust has a consensus target price of $5.38, indicating a potential upside of 115.86%. Given Service Properties Trust’s higher probable upside, analysts clearly believe Service Properties Trust is more favorable than Independence Realty Trust.

Summary

Independence Realty Trust beats Service Properties Trust on 10 of the 15 factors compared between the two stocks.

About Independence Realty Trust

Independence Realty Trust, Inc. (NYSE: IRT) is a real estate investment trust that owns and operates multifamily communities, across non-gateway U.S. markets including Atlanta, GA, Dallas, TX, Denver, CO, Columbus, OH, Indianapolis, IN, Raleigh-Durham, NC, Oklahoma City, OK, Nashville, TN, Houston, TX, and Tampa, FL. IRT’s investment strategy is focused on gaining scale near major employment centers within key amenity rich submarkets that offer good school districts and high-quality retail. IRT aims to provide stockholders attractive risk-adjusted returns through diligent portfolio management, strong operational performance, and a consistent return on capital through distributions and capital appreciation.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.