Gramercy Property Trust (NYSE: GPT) and DCT Industrial Trust (NYSE:DCT) are both mid-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
92.2% of Gramercy Property Trust shares are held by institutional investors. Comparatively, 95.1% of DCT Industrial Trust shares are held by institutional investors. 1.4% of Gramercy Property Trust shares are held by company insiders. Comparatively, 1.5% of DCT Industrial Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.8%. DCT Industrial Trust pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Gramercy Property Trust pays out 348.8% 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 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. Gramercy Property Trust has raised its dividend for 3 consecutive years and DCT Industrial Trust has raised its dividend for 3 consecutive years.
Risk and Volatility
Gramercy Property Trust has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, DCT Industrial Trust has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Gramercy Property Trust and DCT Industrial Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||2||3||0||2.33|
|DCT Industrial Trust||1||5||3||0||2.22|
Gramercy Property Trust presently has a consensus price target of $31.25, indicating a potential upside of 19.87%. DCT Industrial Trust has a consensus price target of $57.75, indicating a potential upside of 2.23%. Given Gramercy Property Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Gramercy Property Trust is more favorable than DCT Industrial Trust.
This table compares Gramercy Property Trust and DCT Industrial Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||14.10%||2.60%||1.25%|
|DCT Industrial Trust||24.39%||5.16%||2.66%|
Valuation & Earnings
This table compares Gramercy Property Trust and DCT Industrial Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$517.26 million||8.10||$33.35 million||$0.43||60.63|
|DCT Industrial Trust||$392.78 million||13.39||$93.06 million||$1.10||51.35|
DCT Industrial Trust has lower revenue, but higher earnings than Gramercy Property Trust. DCT Industrial Trust is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
DCT Industrial Trust beats Gramercy Property Trust on 10 of the 15 factors compared between the two stocks.
Gramercy Property Trust Company Profile
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and 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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