Critical Review: Digital Realty Trust (DLR) & Inland Real Estate (IRC)
Inland Real Estate (NYSE: IRC) and Digital Realty Trust (NYSE:DLR) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
This table compares Inland Real Estate and Digital Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Inland Real Estate||-0.49%||-2.46%||-0.06%|
|Digital Realty Trust||21.27%||12.39%||4.15%|
This is a breakdown of recent ratings and recommmendations for Inland Real Estate and Digital Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Inland Real Estate||0||0||0||0||N/A|
|Digital Realty Trust||0||6||8||0||2.57|
Digital Realty Trust has a consensus price target of $118.83, suggesting a potential downside of 1.49%. Given Digital Realty Trust’s higher possible upside, analysts clearly believe Digital Realty Trust is more favorable than Inland Real Estate.
Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.1%. Inland Real Estate does not pay a dividend. Digital Realty Trust pays out 148.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Inland Real Estate has increased its dividend for 12 consecutive years.
Valuation and Earnings
This table compares Inland Real Estate and Digital Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inland Real Estate||N/A||N/A||N/A||N/A||N/A|
|Digital Realty Trust||$2.26 billion||8.66||$1.22 billion||$2.51||48.06|
Digital Realty Trust has higher revenue and earnings than Inland Real Estate.
Digital Realty Trust beats Inland Real Estate on 7 of the 9 factors compared between the two stocks.
Inland Real Estate Company Profile
IRC Retail Centers, Inc., formerly Inland Real Estate Corporation, is a real estate investment trust (REIT). The Company owns, operates and develops open-air neighborhood, community and power shopping centers and single tenant retail properties located throughout the Central and Southeastern United States. Through its subsidiaries, Inland Commercial Property Management, Inc. (ICPM) and Inland TRS Property Management, Inc., the Company manages all properties it owns interests in and properties for certain third parties and related parties. The Company owns investment properties located in the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, New York, North Carolina, Ohio, Oklahoma, South Carolina, Texas, Virginia and Wisconsin. The Company owns interests in approximately 130 investment properties, including those owned through its unconsolidated joint ventures.
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.
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