Head-To-Head Survey: Dupont Fabros Technology (DFT) versus Liberty Property Trust (LPT)
Dupont Fabros Technology (NYSE: DFT) and Liberty Property Trust (NYSE:LPT) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
This table compares Dupont Fabros Technology and Liberty Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dupont Fabros Technology||26.05%||19.58%||4.64%|
|Liberty Property Trust||47.24%||11.37%||5.51%|
Dupont Fabros Technology pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. 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. Liberty Property Trust pays out 68.4% of its earnings in the form of a dividend. Dupont Fabros Technology has increased its dividend for 5 consecutive years and Liberty Property Trust has increased its dividend for 2 consecutive years. Liberty Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Dupont Fabros Technology has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
This is a summary of recent recommendations for Dupont Fabros Technology and Liberty Property Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dupont Fabros Technology||0||9||4||0||2.31|
|Liberty Property Trust||1||3||3||0||2.29|
Dupont Fabros Technology currently has a consensus target price of $60.15, suggesting a potential downside of 9.29%. Liberty Property Trust has a consensus target price of $42.50, suggesting a potential downside of 0.79%. Given Liberty Property Trust’s higher possible upside, analysts plainly believe Liberty Property Trust is more favorable than Dupont Fabros Technology.
Institutional and Insider Ownership
91.7% of Liberty Property Trust shares are owned by institutional investors. 5.6% of Dupont Fabros Technology shares are owned by insiders. Comparatively, 1.5% of Liberty Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Dupont Fabros Technology and Liberty Property Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dupont Fabros Technology||$543.97 million||9.45||$333.04 million||$1.64||40.43|
|Liberty Property Trust||$728.41 million||8.66||$406.11 million||$2.34||18.31|
Liberty Property Trust has higher revenue and earnings than Dupont Fabros Technology. Liberty Property Trust 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.
Liberty Property Trust beats Dupont Fabros Technology on 10 of the 17 factors compared between the two stocks.
About Dupont Fabros Technology
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.
About Liberty Property Trust
Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.
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