Head-To-Head Analysis: Duke Realty Corporation (DRE) & DCT Industrial Trust (NYSE:DCT)
Duke Realty Corporation (NYSE: DRE) and DCT Industrial Trust (NYSE:DCT) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Volatility & Risk
Duke Realty Corporation has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, DCT Industrial Trust has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Valuation and Earnings
This table compares Duke Realty Corporation and DCT Industrial Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Duke Realty Corporation||$915.50 million||10.87||$510.04 million||$0.96||29.15|
|DCT Industrial Trust||$408.95 million||12.39||$278.55 million||$0.78||70.62|
Duke Realty Corporation has higher revenue and earnings than DCT Industrial Trust. Duke Realty Corporation 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.
Institutional & Insider Ownership
93.0% of Duke Realty Corporation shares are held by institutional investors. Comparatively, 96.2% of DCT Industrial Trust shares are held by institutional investors. 0.3% of Duke Realty Corporation 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.7%. DCT Industrial Trust pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. 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. DCT Industrial Trust pays out 159.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Duke Realty Corporation has raised its dividend for 2 consecutive years and DCT Industrial Trust has raised its dividend for 2 consecutive years. Duke Realty Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current recommendations and price targets for Duke Realty Corporation and DCT Industrial Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Duke Realty Corporation||0||5||7||0||2.58|
|DCT Industrial Trust||0||5||2||0||2.29|
Duke Realty Corporation currently has a consensus price target of $29.20, indicating a potential upside of 4.36%. DCT Industrial Trust has a consensus price target of $51.33, indicating a potential downside of 6.80%. Given Duke Realty Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Duke Realty Corporation is more favorable than DCT Industrial Trust.
This table compares Duke Realty Corporation and DCT Industrial Trust’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%|
|DCT Industrial Trust||17.68%||3.67%||1.90%|
Duke Realty Corporation beats DCT Industrial Trust on 11 of the 15 factors compared between the two stocks.
Duke Realty Corporation Company Profile
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.
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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