UDR (NYSE:UDR – Get Rating) and Cousins Properties (NYSE:CUZ – Get Rating) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommendations for UDR and Cousins Properties, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UDR | 0 | 4 | 9 | 0 | 2.69 |
| Cousins Properties | 0 | 1 | 2 | 0 | 2.67 |
UDR currently has a consensus price target of $57.87, suggesting a potential upside of 25.39%. Cousins Properties has a consensus price target of $42.75, suggesting a potential upside of 41.70%. Given Cousins Properties’ higher probable upside, analysts clearly believe Cousins Properties is more favorable than UDR.
Valuation and Earnings
This table compares UDR and Cousins Properties’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UDR | $1.29 billion | 11.38 | $150.02 million | $0.51 | 90.49 |
| Cousins Properties | $755.07 million | 5.94 | $278.59 million | $1.86 | 16.22 |
Cousins Properties has lower revenue, but higher earnings than UDR. Cousins Properties is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
UDR has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Cousins Properties has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Insider and Institutional Ownership
96.4% of UDR shares are owned by institutional investors. Comparatively, 98.5% of Cousins Properties shares are owned by institutional investors. 3.4% of UDR shares are owned by company insiders. Comparatively, 0.9% of Cousins Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares UDR and Cousins Properties’ net margins, return on equity and return on assets.
| Just Margins | Return on Equity | Return on Assets | |
| UDR | 11.93% | 4.79% | 1.45% |
| Cousins Properties | 36.88% | 6.12% | 3.88% |
Dividends
UDR pays an annual dividend of $1.52 per share and has a dividend yield of 3.3%. Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. UDR pays out 298.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cousins Properties pays out 68.8% of its earnings in the form of a dividend. UDR has increased its dividend for 14 consecutive years and Cousins Properties has increased its dividend for 5 consecutive years. Cousins Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Cousins Properties beats UDR on 10 of the 17 factors compared between the two stocks.
UDR Company Profile (GetRated)
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 US markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
Cousins Properties Company Profile (GetRated)
Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office towers located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.
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