Duke Realty (NYSE: DRE) and Gramercy Property Trust (NYSE:GPT) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Duke Realty and Gramercy Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duke Realty 178.66% 6.36% 3.68%
Gramercy Property Trust 14.10% 2.60% 1.25%

Analyst Recommendations

This is a breakdown of recent recommendations for Duke Realty and Gramercy Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duke Realty 0 5 5 0 2.50
Gramercy Property Trust 1 2 3 0 2.33

Duke Realty presently has a consensus target price of $29.56, suggesting a potential upside of 6.66%. Gramercy Property Trust has a consensus target price of $31.25, suggesting a potential upside of 12.69%. Given Gramercy Property Trust’s higher possible upside, analysts plainly believe Gramercy Property Trust is more favorable than Duke Realty.

Dividends

Duke Realty pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.4%. Duke Realty pays out 19.2% of its earnings in the form of a dividend. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Duke Realty has increased its dividend for 2 consecutive years and Gramercy Property Trust has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Duke Realty and Gramercy Property Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Duke Realty $902.24 million 10.94 $312.14 million $4.17 6.65
Gramercy Property Trust $517.26 million 8.61 $33.35 million $0.44 63.02

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

Insider and Institutional Ownership

94.1% of Duke Realty shares are held by institutional investors. Comparatively, 92.2% of Gramercy Property Trust shares are held by institutional investors. 0.3% of Duke Realty shares are held by company insiders. Comparatively, 1.4% of Gramercy Property Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Duke Realty has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Gramercy Property Trust has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Summary

Duke Realty beats Gramercy Property Trust on 13 of the 16 factors compared between the two stocks.

Duke Realty Company Profile

Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments. The operations of its industrial and medical office properties, as well as its rental operations, are collectively referred to as Rental Operations. The third segment includes real estate services, such as property management, asset management, leasing, development, general contracting and construction management. Its Service Operations segment also includes its taxable REIT subsidiary, through which certain of the segment’s operations are conducted. It maintains a Baa1 rating from Moody’s Investor Service, Inc. and a BBB+ rating from Standard & Poor’s Financial Services LLC.

Gramercy Property Trust Company Profile

Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.

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