Contrasting Urstadt Biddle Properties (UBA) & Dupont Fabros Technology (DFT)
Urstadt Biddle Properties (NYSE: UBA) and Dupont Fabros Technology (NYSE:DFT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Volatility & Risk
Urstadt Biddle Properties has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Dupont Fabros Technology has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares Urstadt Biddle Properties and Dupont Fabros Technology’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Urstadt Biddle Properties||$120.70 million||6.41||$71.51 million||$1.05||19.54|
|Dupont Fabros Technology||$543.97 million||8.91||$333.04 million||$1.64||38.15|
Dupont Fabros Technology has higher revenue and earnings than Urstadt Biddle Properties. Urstadt Biddle Properties is trading at a lower price-to-earnings ratio than Dupont Fabros Technology, indicating that it is currently the more affordable of the two stocks.
Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 5.2%. Dupont Fabros Technology pays an annual dividend of $2.00 per share and has a dividend yield of 3.2%. Urstadt Biddle Properties pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dupont Fabros Technology pays out 122.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties has raised its dividend for 5 consecutive years and Dupont Fabros Technology has raised its dividend for 17 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Urstadt Biddle Properties and Dupont Fabros Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Urstadt Biddle Properties||44.94%||13.56%||5.68%|
|Dupont Fabros Technology||26.05%||19.58%||4.64%|
This is a summary of recent ratings and target prices for Urstadt Biddle Properties and Dupont Fabros Technology, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Urstadt Biddle Properties||0||0||1||0||3.00|
|Dupont Fabros Technology||0||9||4||0||2.31|
Urstadt Biddle Properties presently has a consensus price target of $22.00, indicating a potential upside of 7.21%. Dupont Fabros Technology has a consensus price target of $58.95, indicating a potential downside of 5.78%. Given Urstadt Biddle Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe Urstadt Biddle Properties is more favorable than Dupont Fabros Technology.
Insider and Institutional Ownership
61.2% of Urstadt Biddle Properties shares are held by institutional investors. 20.1% of Urstadt Biddle Properties shares are held by company insiders. Comparatively, 5.6% of Dupont Fabros Technology 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.
Dupont Fabros Technology beats Urstadt Biddle Properties on 9 of the 17 factors compared between the two stocks.
Urstadt Biddle Properties Company Profile
Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.
Dupont Fabros Technology Company Profile
DuPont Fabros Technology, Inc. (DFT) is a real estate investment trust (REIT). The Company owns, acquires, develops and operates wholesale data centers. The Company’s customers include national and international enterprises across various industries, such as technology, Internet, content providers, cloud providers, media, communications, healthcare and financial services. Its data centers are located in four population centers: Northern Virginia; suburban Chicago, Illinois; Piscataway, New Jersey, and Santa Clara, California. As of December 31, 2016, the Company owned various properties, including 11 operating data centers facilities; five phases of existing data center facilities under development; one shell of a data center under development; two data center facilities with a phase or phases available for development, and parcels of land held for development of four data centers. As of December 31, 2016, the Company’s 11 data centers had a total of 3.3 million gross square feet.
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