Critical Review: Duke Realty Corporation (DRE) & The Competition
Duke Realty Corporation (NYSE: DRE) is one of 14 public companies in the “Industrial REITs” industry, but how does it contrast to its peers? We will compare Duke Realty Corporation to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.
Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. Duke Realty Corporation pays out 18.2% of its earnings in the form of a dividend. As a group, “Industrial REITs” companies pay a dividend yield of 2.9% and pay out 81.0% of their earnings in the form of a dividend. Duke Realty Corporation has increased its dividend for 2 consecutive years.
This is a summary of current ratings for Duke Realty Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Duke Realty Corporation||0||5||5||0||2.50|
|Duke Realty Corporation Competitors||56||502||494||5||2.42|
Duke Realty Corporation currently has a consensus target price of $29.56, indicating a potential upside of 2.06%. As a group, “Industrial REITs” companies have a potential downside of 1.34%. Given Duke Realty Corporation’s stronger consensus rating and higher probable upside, equities analysts clearly believe Duke Realty Corporation is more favorable than its peers.
This table compares Duke Realty Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Duke Realty Corporation||178.66%||6.36%||3.68%|
|Duke Realty Corporation Competitors||52.16%||7.10%||3.68%|
Risk and Volatility
Duke Realty Corporation has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Duke Realty Corporation’s peers have a beta of 1.06, meaning that their average share price is 6% more volatile than the S&P 500.
Valuation & Earnings
This table compares Duke Realty Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Duke Realty Corporation||$902.24 million||$312.14 million||6.94|
|Duke Realty Corporation Competitors||$606.71 million||$215.55 million||144.04|
Duke Realty Corporation has higher revenue and earnings than its peers. Duke Realty Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
93.2% of Duke Realty Corporation shares are owned by institutional investors. Comparatively, 93.1% of shares of all “Industrial REITs” companies are owned by institutional investors. 0.3% of Duke Realty Corporation shares are owned by insiders. Comparatively, 1.7% of shares of all “Industrial REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Duke Realty Corporation beats its peers on 8 of the 15 factors compared.
Duke Realty Corporation 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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