Critical Survey: DCT Industrial Trust (DCT) and Granite Real Estate Investment Trust (GRP)
DCT Industrial Trust (NYSE: DCT) and Granite Real Estate Investment Trust (NYSE:GRP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
95.1% of DCT Industrial Trust shares are held by institutional investors. 1.5% of DCT Industrial Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares DCT Industrial Trust and Granite Real Estate Investment Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DCT Industrial Trust||24.39%||5.16%||2.66%|
|Granite Real Estate Investment Trust||N/A||N/A||N/A|
Earnings and Valuation
This table compares DCT Industrial Trust and Granite Real Estate Investment Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DCT Industrial Trust||$392.78 million||13.59||$93.06 million||$1.10||52.10|
|Granite Real Estate Investment Trust||N/A||N/A||N/A||$1.29||30.64|
DCT Industrial Trust has higher revenue and earnings than Granite Real Estate Investment Trust. Granite Real Estate Investment Trust is trading at a lower price-to-earnings ratio than DCT Industrial Trust, indicating that it is currently the more affordable of the two stocks.
DCT Industrial Trust pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Granite Real Estate Investment Trust does not pay a dividend. DCT Industrial Trust pays out 130.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Investment Trust has increased its dividend for 3 consecutive years.
Risk and Volatility
DCT Industrial Trust has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Granite Real Estate Investment Trust has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for DCT Industrial Trust and Granite Real Estate Investment Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DCT Industrial Trust||1||5||3||0||2.22|
|Granite Real Estate Investment Trust||0||1||0||0||2.00|
DCT Industrial Trust presently has a consensus price target of $57.75, suggesting a potential upside of 0.77%. Given DCT Industrial Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe DCT Industrial Trust is more favorable than Granite Real Estate Investment Trust.
DCT Industrial Trust beats Granite Real Estate Investment Trust on 11 of the 15 factors compared between the two stocks.
About DCT Industrial Trust
DCT Industrial Trust Inc. (DCT) is an industrial real estate company. The Company specializes in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties located in various distribution markets in the United States. The Company operates through three segments: East, Central and West. As of December 31, 2016, the Company owned interests in approximately 74.0 million square feet of properties leased to various customers, including 64.7 million square feet consisting of 401 consolidated operating properties that were 97.2% occupied; 7.8 million square feet consisting of 23 unconsolidated properties that were 97.8% occupied; 0.3 million square feet consisting of three consolidated properties under redevelopment, and 1.2 million square feet consisting of four consolidated properties. As of December 31, 2016, the Company’s total consolidated portfolio consisted of 408 properties with an average size of 162,000 square feet.
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.
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