DCT Industrial Trust (NYSE: DCT) and Rexford Industrial Realty (NYSE:REXR) are both mid-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares DCT Industrial Trust and Rexford Industrial Realty’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DCT Industrial Trust $419.37 million 12.68 $287.84 million $0.99 57.70
Rexford Industrial Realty $139.65 million 14.35 $82.43 million $0.45 62.91

DCT Industrial Trust has higher revenue and earnings than Rexford Industrial Realty. DCT Industrial Trust is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

DCT Industrial Trust has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

96.1% of DCT Industrial Trust shares are held by institutional investors. Comparatively, 96.9% of Rexford Industrial Realty shares are held by institutional investors. 1.5% of DCT Industrial Trust shares are held by insiders. Comparatively, 2.1% of Rexford Industrial Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

DCT Industrial Trust pays an annual dividend of $1.24 per share and has a dividend yield of 2.2%. Rexford Industrial Realty pays an annual dividend of $0.58 per share and has a dividend yield of 2.0%. 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. Rexford Industrial Realty pays out 128.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DCT Industrial Trust has raised its dividend for 2 consecutive years. DCT Industrial Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares DCT Industrial Trust and Rexford Industrial Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DCT Industrial Trust 41.61% 8.79% 4.54%
Rexford Industrial Realty 25.38% 3.72% 2.15%

Analyst Recommendations

This is a summary of current ratings and target prices for DCT Industrial Trust and Rexford Industrial Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DCT Industrial Trust 0 5 2 0 2.29
Rexford Industrial Realty 0 2 1 0 2.33

DCT Industrial Trust currently has a consensus target price of $51.67, suggesting a potential downside of 9.55%. Rexford Industrial Realty has a consensus target price of $23.75, suggesting a potential downside of 16.11%. Given DCT Industrial Trust’s higher probable upside, analysts clearly believe DCT Industrial Trust is more favorable than Rexford Industrial Realty.

Summary

DCT Industrial Trust beats Rexford Industrial Realty on 12 of the 17 factors compared between the two stocks.

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.

Rexford Industrial Realty Company Profile

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of July 19, 2017, the Company’s consolidated portfolio consisted of 142 properties with approximately 17.7 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet.

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