Financial Analysis: Digital Realty Trust (DLR) and Its Peers
Digital Realty Trust (NYSE: DLR) is one of 86 public companies in the “Commercial REITs” industry, but how does it compare to its rivals? We will compare Digital Realty Trust to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.
Institutional & Insider Ownership
68.7% of shares of all “Commercial REITs” companies are held by institutional investors. 0.4% of Digital Realty Trust shares are held by company insiders. Comparatively, 8.3% of shares of all “Commercial REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Digital Realty Trust and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Digital Realty Trust||0||9||7||0||2.44|
|Digital Realty Trust Competitors||628||2467||2132||22||2.29|
Digital Realty Trust presently has a consensus price target of $122.00, indicating a potential downside of 0.61%. As a group, “Commercial REITs” companies have a potential upside of 4.81%. Given Digital Realty Trust’s rivals higher probable upside, analysts plainly believe Digital Realty Trust has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares Digital Realty Trust and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Digital Realty Trust||$2.26 billion||$1.22 billion||48.90|
|Digital Realty Trust Competitors||$460.20 million||$291.73 million||32.80|
Digital Realty Trust has higher revenue and earnings than its rivals. Digital Realty Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.0%. 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. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 205.1% of their earnings in the form of a dividend. Digital Realty Trust has increased its dividend for 12 consecutive years.
This table compares Digital Realty Trust and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Digital Realty Trust||21.27%||12.39%||4.15%|
|Digital Realty Trust Competitors||52.53%||6.83%||3.87%|
Risk & Volatility
Digital Realty Trust has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Digital Realty Trust’s rivals have a beta of 0.81, indicating that their average share price is 19% less volatile than the S&P 500.
Digital Realty Trust beats its rivals on 8 of the 15 factors compared.
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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