DCT Industrial Trust (NYSE: DCT) and Stag Industrial (NYSE:STAG) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitability, valuation, earnings and analyst recommendations.
Earnings & Valuation
This table compares DCT Industrial Trust and Stag Industrial’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DCT Industrial Trust||$418.17 million||13.24||$286.65 million||$0.99||60.07|
|Stag Industrial||$270.80 million||9.67||$185.80 million||$0.28||101.36|
DCT Industrial Trust has higher revenue and earnings than Stag Industrial. DCT Industrial Trust is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.4% of DCT Industrial Trust shares are owned by institutional investors. Comparatively, 81.2% of Stag Industrial shares are owned by institutional investors. 1.5% of DCT Industrial Trust shares are owned by insiders. Comparatively, 2.0% of Stag Industrial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings for DCT Industrial Trust and Stag Industrial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DCT Industrial Trust||0||5||2||0||2.29|
DCT Industrial Trust currently has a consensus target price of $53.00, indicating a potential downside of 10.88%. Stag Industrial has a consensus target price of $27.58, indicating a potential downside of 2.81%. Given Stag Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Stag Industrial is more favorable than DCT Industrial Trust.
DCT Industrial Trust pays an annual dividend of $1.24 per share and has a dividend yield of 2.1%. Stag Industrial pays an annual dividend of $1.41 per share and has a dividend yield of 5.0%. DCT Industrial Trust pays out 125.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 503.6% 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 2 consecutive years and Stag Industrial has increased its dividend for 6 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares DCT Industrial Trust and Stag Industrial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DCT Industrial Trust||22.20%||4.69%||2.43%|
Volatility & Risk
DCT Industrial Trust has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
DCT Industrial Trust beats Stag Industrial on 10 of the 17 factors compared between the two stocks.
About DCT Industrial Trust
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.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment trust. The Company is focused on the acquisition, ownership, and operation of single-tenant, industrial properties across the United States. As of December 31, 2016, the Company owned 314 buildings in 37 states with approximately 60.9 million rentable square feet, consisting of 243 warehouse/distribution buildings, 54 light manufacturing buildings, 16 flex/office buildings, and one building in redevelopment. The Company owns all of its properties and conducts its business primarily through STAG Industrial Operating Partnership, L.P. (Operating Partnership). The Company invests in properties historically used for industrial, light manufacturing and commercial purposes. As of December 31, 2016, the Company’s properties were in various locations, such as Montgomery, Alabama; Rogers, Arkansas; Phoenix, Arizona; Sparks, Maryland; Camarillo, California, and Golden and Grand Junction in Colorado.
Receive News & Ratings for DCT Industrial Trust Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DCT Industrial Trust Inc and related companies with MarketBeat.com's FREE daily email newsletter.