Analyzing CyrusOne (CONE) and QTS Realty Trust (QTS)

CyrusOne (NASDAQ: CONE) and QTS Realty Trust (NYSE:QTS) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for CyrusOne and QTS Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyrusOne 1 2 10 0 2.69
QTS Realty Trust 0 4 9 0 2.69

CyrusOne presently has a consensus price target of $61.00, indicating a potential downside of 1.87%. QTS Realty Trust has a consensus price target of $56.92, indicating a potential upside of 4.99%. Given QTS Realty Trust’s higher probable upside, analysts clearly believe QTS Realty Trust is more favorable than CyrusOne.

Dividends

CyrusOne pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. CyrusOne pays out -541.9% of its earnings in the form of a dividend. QTS Realty Trust pays out 390.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QTS Realty Trust has increased its dividend for 2 consecutive years. QTS Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

CyrusOne has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, QTS Realty Trust has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Valuation and Earnings

This table compares CyrusOne and QTS Realty Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CyrusOne $597.40 million 9.17 $296.60 million ($0.31) -200.51
QTS Realty Trust $422.74 million 6.26 $158.07 million $0.40 135.53

CyrusOne has higher revenue and earnings than QTS Realty Trust. CyrusOne is trading at a lower price-to-earnings ratio than QTS Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CyrusOne and QTS Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CyrusOne -4.35% 1.30% 0.52%
QTS Realty Trust 4.60% 2.04% 0.93%

Institutional & Insider Ownership

96.5% of CyrusOne shares are held by institutional investors. 1.6% of CyrusOne shares are held by company insiders. Comparatively, 17.3% of QTS Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

QTS Realty Trust beats CyrusOne on 8 of the 15 factors compared between the two stocks.

CyrusOne Company Profile

CyrusOne Inc. is a real estate investment trust. The Company is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant data center properties. The Company’s data centers are generally purpose-built facilities with redundant power and cooling. The CyrusOne National IX Platform (the National IX Platform) delivers interconnection across states and between metro-enabled sites within its footprint and beyond. The Company has data centers in the United States, London and Singapore. As of December 31, 2016, the Company provided mission-critical data center facilities for 932 customers in 35 data centers and two recovery centers in 11 distinct markets (nine cities in the United States, London and Singapore) with approximately 3,904,000 net rentable square feet (NRSF). The Company provides round the clock security guard monitoring with customizable security features. As of December 31, 2016, the Company had approximately 1,657,000 NRSF under development.

QTS Realty Trust Company Profile

QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.

Receive News & Ratings for CyrusOne Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CyrusOne Inc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply