Duke Realty Corporation (NYSE: DRE) and Terreno Realty Corporation (NYSE:TRNO) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitabiliy, analyst recommendations and valuation.

Earnings & Valuation

This table compares Duke Realty Corporation and Terreno Realty Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Duke Realty Corporation $915.50 million 10.93 $510.04 million $0.96 29.32
Terreno Realty Corporation $114.20 million 14.34 $61.70 million N/A N/A

Duke Realty Corporation has higher revenue and earnings than Terreno Realty Corporation.

Dividends

Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.7%. Terreno Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Duke Realty Corporation pays out 79.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Duke Realty Corporation has raised its dividend for 2 consecutive years and Terreno Realty Corporation has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Duke Realty Corporation and Terreno Realty Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duke Realty Corporation 0 5 7 0 2.58
Terreno Realty Corporation 0 6 4 0 2.40

Duke Realty Corporation presently has a consensus price target of $29.30, indicating a potential upside of 4.09%. Terreno Realty Corporation has a consensus price target of $31.06, indicating a potential downside of 6.69%. Given Duke Realty Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Duke Realty Corporation is more favorable than Terreno Realty Corporation.

Profitability

This table compares Duke Realty Corporation and Terreno Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duke Realty Corporation 37.48% 9.74% 4.91%
Terreno Realty Corporation 11.02% 1.64% 1.01%

Institutional & Insider Ownership

93.0% of Duke Realty Corporation shares are held by institutional investors. 0.3% of Duke Realty Corporation shares are held by insiders. Comparatively, 3.0% of Terreno Realty Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Duke Realty Corporation has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Terreno Realty Corporation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Summary

Duke Realty Corporation beats Terreno Realty Corporation on 11 of the 16 factors compared between the two stocks.

About Duke Realty Corporation

Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments. The operations of its industrial and medical office properties, as well as its rental operations, are collectively referred to as Rental Operations. The third segment consists of various real estate services, such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as Service Operations. Its Service Operations segment also includes its taxable REIT subsidiary, through which certain of the segment’s operations are conducted.

About Terreno Realty Corporation

Terreno Realty Corporation acquires, owns and operates industrial real estate in coastal markets in the United States, such as Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, District of Columbia (D.C.)/Baltimore. The Company invests in a range of industrial real estate, including warehouse/distribution, flex (including light industrial and research and development) and trans-shipment. As of December 31, 2016, the Company owned 166 buildings aggregating approximately 12 million square feet and five land parcels consisting of 22.8 acres. As of December 31, 2016, its properties were leased to 376 customers. The Company focuses on functional buildings in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which it operates.

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