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

Insider & Institutional Ownership

92.2% of Gramercy Property Trust shares are held by institutional investors. Comparatively, 94.1% of Duke Realty shares are held by institutional investors. 1.0% of Gramercy Property Trust shares are held by insiders. Comparatively, 0.3% of Duke Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

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

Dividends

Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.4%. Duke Realty pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Gramercy Property Trust pays out 348.8% 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 pays out 19.2% of its earnings in the form of a dividend. Gramercy Property Trust has increased its dividend for 2 consecutive years and Duke Realty has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Gramercy Property Trust and Duke Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gramercy Property Trust 1 2 3 0 2.33
Duke Realty 1 3 6 0 2.50

Gramercy Property Trust currently has a consensus target price of $31.25, suggesting a potential upside of 12.57%. Duke Realty has a consensus target price of $29.70, suggesting a potential upside of 6.76%. Given Gramercy Property Trust’s higher probable upside, equities analysts clearly believe Gramercy Property Trust is more favorable than Duke Realty.

Risk and Volatility

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gramercy Property Trust $517.26 million 8.62 $33.35 million $0.43 64.56
Duke Realty $902.24 million 10.98 $312.14 million $4.17 6.67

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.

Summary

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

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.

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.

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