Granite Real Estate Investment Trust (NYSE:GRP) & DCT Industrial Trust (DCT) Head to Head Analysis

Granite Real Estate Investment Trust (NYSE: GRP) and DCT Industrial Trust (NYSE:DCT) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.

Dividends

DCT Industrial Trust pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Granite Real Estate Investment Trust does not pay a dividend. DCT Industrial Trust pays out 130.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DCT Industrial Trust has increased its dividend for 3 consecutive years.

Risk and Volatility

Granite Real Estate Investment Trust has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, DCT Industrial Trust has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Granite Real Estate Investment Trust and DCT Industrial Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Granite Real Estate Investment Trust N/A N/A N/A
DCT Industrial Trust 24.39% 5.16% 2.66%

Valuation & Earnings

This table compares Granite Real Estate Investment Trust and DCT Industrial Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Granite Real Estate Investment Trust N/A N/A N/A $1.29 30.64
DCT Industrial Trust $392.78 million 13.39 $93.06 million $1.10 51.35

DCT Industrial Trust has higher revenue and earnings than Granite Real Estate Investment Trust. Granite Real Estate Investment Trust is trading at a lower price-to-earnings ratio than DCT Industrial Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Granite Real Estate Investment Trust and DCT Industrial Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Granite Real Estate Investment Trust 0 1 0 0 2.00
DCT Industrial Trust 1 5 3 0 2.22

DCT Industrial Trust has a consensus target price of $57.75, indicating a potential upside of 2.23%. Given DCT Industrial Trust’s stronger consensus rating and higher probable upside, analysts plainly believe DCT Industrial Trust is more favorable than Granite Real Estate Investment Trust.

Insider & Institutional Ownership

95.1% of DCT Industrial Trust shares are held by institutional investors. 1.5% of DCT Industrial Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

DCT Industrial Trust beats Granite Real Estate Investment Trust on 12 of the 15 factors compared between the two stocks.

Granite Real Estate Investment Trust Company Profile

Granite Real Estate Investment Trust is a real estate investment trust (REIT). It is engaged principally in the acquisition, development, construction, leasing, management and ownership of an industrial global rental portfolio of properties in North America and Europe leased primarily to Magna International Inc. and its automotive operating units. It is a service REIT with an international portfolio consisting of over 100 properties. It provides a range of services that includes sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. In November 2013, Granite Real Estate Investment Trust completed its acquisition of a 2.5 million square foot portfolio of seven properties located in Germany and the Netherlands from funds managed by AEW Europe.

DCT Industrial Trust Company Profile

DCT Industrial Trust Inc. (DCT) is an industrial real estate company. The Company specializes in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties located in various distribution markets in the United States. The Company operates through three segments: East, Central and West. As of December 31, 2016, the Company owned interests in approximately 74.0 million square feet of properties leased to various customers, including 64.7 million square feet consisting of 401 consolidated operating properties that were 97.2% occupied; 7.8 million square feet consisting of 23 unconsolidated properties that were 97.8% occupied; 0.3 million square feet consisting of three consolidated properties under redevelopment, and 1.2 million square feet consisting of four consolidated properties. As of December 31, 2016, the Company’s total consolidated portfolio consisted of 408 properties with an average size of 162,000 square feet.

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