Critical Comparison: Granite Real Estate Investment Trust (GRP) & Duke Realty (DRE)
Granite Real Estate Investment Trust (NYSE: GRP) and Duke Realty (NYSE:DRE) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Earnings & Valuation
This table compares Granite Real Estate Investment Trust and Duke Realty’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Granite Real Estate Investment Trust||N/A||N/A||N/A||$1.29||30.64|
|Duke Realty||$902.24 million||10.80||$312.14 million||$4.17||6.56|
Duke Realty has higher revenue and earnings than Granite Real Estate Investment Trust. Duke Realty is trading at a lower price-to-earnings ratio than Granite Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.1% of Duke Realty shares are owned by institutional investors. 0.3% of Duke Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Granite Real Estate Investment Trust and Duke Realty, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Granite Real Estate Investment Trust||0||3||0||0||2.00|
Granite Real Estate Investment Trust currently has a consensus price target of $45.50, suggesting a potential upside of 15.13%. Duke Realty has a consensus price target of $29.56, suggesting a potential upside of 8.02%. Given Granite Real Estate Investment Trust’s higher probable upside, research analysts clearly believe Granite Real Estate Investment Trust is more favorable than Duke Realty.
Duke Realty pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Granite Real Estate Investment Trust does not pay a dividend. Duke Realty pays out 19.2% of its earnings in the form of a dividend. Granite Real Estate Investment Trust has increased its dividend for 2 consecutive years.
Risk and Volatility
Granite Real Estate Investment Trust has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Duke Realty has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
This table compares Granite Real Estate Investment Trust and Duke Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Granite Real Estate Investment Trust||N/A||N/A||N/A|
Duke Realty beats Granite Real Estate Investment Trust on 10 of the 14 factors compared between the two stocks.
About Granite Real Estate Investment Trust
Granite Real Estate Investment Trust is a real estate investment trust (REIT). It is engaged principally in the acquisition, development, construction, leasing, management and ownership of an industrial global rental portfolio of properties in North America and Europe leased primarily to Magna International Inc. and its automotive operating units. It is a service REIT with an international portfolio consisting of over 100 properties. It provides a range of services that includes sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. In November 2013, Granite Real Estate Investment Trust completed its acquisition of a 2.5 million square foot portfolio of seven properties located in Germany and the Netherlands from funds managed by AEW Europe.
About Duke Realty
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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