Digital Realty Trust (NYSE: DLR) and Monmouth R.E. Inv. (NYSE:MNR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
This table compares Digital Realty Trust and Monmouth R.E. Inv.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Digital Realty Trust||11.71%||5.15%||1.97%|
|Monmouth R.E. Inv.||30.84%||7.65%||2.58%|
Valuation and Earnings
This table compares Digital Realty Trust and Monmouth R.E. Inv.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Digital Realty Trust||$2.14 billion||10.14||$426.18 million||$1.24||85.31|
|Monmouth R.E. Inv.||$97.66 million||13.37||$40.27 million||$0.32||53.28|
Digital Realty Trust has higher revenue and earnings than Monmouth R.E. Inv.. Monmouth R.E. Inv. is trading at a lower price-to-earnings ratio than Digital Realty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Digital Realty Trust has a beta of -0.09, indicating that its stock price is 109% less volatile than the S&P 500. Comparatively, Monmouth R.E. Inv. has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Digital Realty Trust and Monmouth R.E. Inv., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Digital Realty Trust||0||5||9||0||2.64|
|Monmouth R.E. Inv.||0||1||4||0||2.80|
Digital Realty Trust presently has a consensus price target of $125.08, suggesting a potential upside of 18.24%. Monmouth R.E. Inv. has a consensus price target of $17.80, suggesting a potential upside of 4.40%. Given Digital Realty Trust’s higher possible upside, analysts plainly believe Digital Realty Trust is more favorable than Monmouth R.E. Inv..
Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.5%. Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 4.0%. Digital Realty Trust pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth R.E. Inv. pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Digital Realty Trust has raised its dividend for 13 consecutive years and Monmouth R.E. Inv. has raised its dividend for 3 consecutive years. Monmouth R.E. Inv. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
98.3% of Digital Realty Trust shares are held by institutional investors. Comparatively, 63.1% of Monmouth R.E. Inv. shares are held by institutional investors. 0.4% of Digital Realty Trust shares are held by company insiders. Comparatively, 5.3% of Monmouth R.E. Inv. shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Monmouth R.E. Inv. beats Digital Realty Trust on 9 of the 17 factors compared between the two stocks.
Digital Realty Trust Company Profile
Digital Realty Trust, Inc. is a real estate investment trust (REIT). The Company is engaged in the business of owning, acquiring, developing and operating data centers. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a range of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare and consumer products. As of December 31, 2016, its portfolio consisted of 145 operating properties, including 14 properties held as investments in unconsolidated joint ventures, of which 104 are located throughout the United States, 32 are located in Europe, four are located in Asia, three are located in Australia and two are located in Canada. It is a general partner of Digital Realty Trust, L.P. As of December 31, 2016, it owned an approximate 98.5% common general partnership interest in Digital Realty Trust, L.P.
Monmouth R.E. Inv. Company Profile
Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.
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