Head to Head Comparison: Digital Realty Trust (DLR) and Monmouth R.E. Inv. (MNR)

Digital Realty Trust (NYSE: DLR) and Monmouth R.E. Inv. (NYSE:MNR) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Profitability

This table compares Digital Realty Trust and Monmouth R.E. Inv.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Realty Trust 11.71% 5.15% 1.97%
Monmouth R.E. Inv. 30.84% 7.65% 2.58%

Risk & Volatility

Digital Realty Trust has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500. Comparatively, Monmouth R.E. Inv. has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares Digital Realty Trust and Monmouth R.E. Inv.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Realty Trust $2.14 billion 10.90 $426.18 million $1.23 92.43
Monmouth R.E. Inv. $97.66 million 13.99 $40.27 million $0.32 55.75

Digital Realty Trust has higher revenue and earnings than Monmouth R.E. Inv.. Monmouth R.E. Inv. is trading at a lower price-to-earnings ratio than Digital Realty Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

98.3% of Digital Realty Trust shares are held by institutional investors. Comparatively, 63.1% of Monmouth R.E. Inv. shares are held by institutional investors. 0.4% of Digital Realty Trust shares are held by insiders. Comparatively, 5.3% of Monmouth R.E. Inv. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Digital Realty Trust pays an annual dividend of $3.72 per share and has a dividend yield of 3.3%. Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Digital Realty Trust pays out 302.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth R.E. Inv. pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Digital Realty Trust has increased its dividend for 12 consecutive years and Monmouth R.E. Inv. has increased its dividend for 2 consecutive years. Monmouth R.E. Inv. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for Digital Realty Trust and Monmouth R.E. Inv., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Realty Trust 0 7 7 0 2.50
Monmouth R.E. Inv. 0 1 4 0 2.80

Digital Realty Trust presently has a consensus price target of $124.85, suggesting a potential upside of 9.81%. Monmouth R.E. Inv. has a consensus price target of $17.50, suggesting a potential downside of 1.91%. Given Digital Realty Trust’s higher probable upside, analysts plainly believe Digital Realty Trust is more favorable than Monmouth R.E. Inv..

Summary

Monmouth R.E. Inv. beats Digital Realty Trust on 9 of the 17 factors compared between the two stocks.

About Digital Realty Trust

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.

About Monmouth R.E. Inv.

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.

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