Financial Analysis: Seritage Growth Properties (NYSE:SRG) vs. Digital Realty Trust (NYSE:DLR)

Digital Realty Trust (NYSE:DLR) and Seritage Growth Properties (NYSE:SRG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Digital Realty Trust and Seritage Growth Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Realty Trust	0	7	16	3	2.85
Seritage Growth Properties	1	0	0	0	1.00

Digital Realty Trust presently has a consensus target price of $193.22, indicating a potential upside of 21.53%. Given Digital Realty Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Digital Realty Trust is more favorable than Seritage Growth Properties.

Profitability

This table compares Digital Realty Trust and Seritage Growth Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Realty Trust	23.67%	6.41%	2.98%
Seritage Growth Properties	-404.37%	-20.13%	-12.10%

Risk & Volatility

Digital Realty Trust has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.

Institutional & Insider Ownership

99.7% of Digital Realty Trust shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 0.1% of Digital Realty Trust shares are held by insiders. Comparatively, 0.6% of Seritage Growth Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Digital Realty Trust and Seritage Growth Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Realty Trust	$5.55 billion	9.83	$615.19 million	$3.87	41.08
Seritage Growth Properties	$17.62 million	12.19	-$153.54 million	($1.42)	-2.69

Digital Realty Trust has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties 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.

Summary

Digital Realty Trust beats Seritage Growth Properties on 12 of the 15 factors compared between the two stocks.

About Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Dallas, TX.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.