Equity Residential (NYSE:EQR – Get Free Report) and Elme Communities (NYSE:ELME – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

This table compares Equity Residential and Elme Communities”s revenue, earnings per share and valuation.

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

Equity Residential has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

This table compares Equity Residential and Elme Communities’ net margins, return on equity and return on assets.

Equity Residential pays an annual dividend of $2.77 per share and has a dividend yield of 4.5%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.2%. Equity Residential pays out 91.4% 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 pays out -47.4% of its earnings in the form of a dividend. Equity Residential has raised its dividend for 4 consecutive years. Equity Residential is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

92.7% of Equity Residential shares are owned by institutional investors. Comparatively, 87.9% of Elme Communities shares are owned by institutional investors. 1.0% of Equity Residential shares are owned by company insiders. Comparatively, 1.4% of Elme Communities shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

This is a breakdown of current recommendations for Equity Residential and Elme Communities, as reported by MarketBeat.

Equity Residential presently has a consensus price target of $70.27, indicating a potential upside of 13.28%. Elme Communities has a consensus price target of $18.50, indicating a potential upside of 7.09%. Given Equity Residential’s stronger consensus rating and higher probable upside, analysts plainly believe Equity Residential is more favorable than Elme Communities.

Equity Residential beats Elme Communities on 13 of the 17 factors compared between the two stocks.