Critical Survey: Physicians Realty Trust (DOC) vs. Realty Income (O)
Physicians Realty Trust (NYSE:DOC) and Realty Income (NYSE:O) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Volatility and Risk
Physicians Realty Trust has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 4.9%. Realty Income pays an annual dividend of $2.71 per share and has a dividend yield of 3.9%. Physicians Realty Trust pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income pays out 88.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Physicians Realty Trust has raised its dividend for 2 consecutive years and Realty Income has raised its dividend for 23 consecutive years. Physicians Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and target prices for Physicians Realty Trust and Realty Income, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Physicians Realty Trust||0||4||8||0||2.67|
Physicians Realty Trust currently has a consensus price target of $17.55, indicating a potential downside of 5.87%. Realty Income has a consensus price target of $58.17, indicating a potential downside of 16.38%. Given Physicians Realty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Physicians Realty Trust is more favorable than Realty Income.
This table compares Physicians Realty Trust and Realty Income’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Physicians Realty Trust||13.33%||2.20%||1.32%|
Institutional & Insider Ownership
92.1% of Physicians Realty Trust shares are held by institutional investors. Comparatively, 71.4% of Realty Income shares are held by institutional investors. 0.5% of Physicians Realty Trust shares are held by company insiders. Comparatively, 0.2% of Realty Income shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Physicians Realty Trust and Realty Income’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Physicians Realty Trust||$343.58 million||9.89||$38.14 million||$1.04||17.92|
|Realty Income||$1.22 billion||16.88||$318.79 million||$3.06||22.73|
Realty Income has higher revenue and earnings than Physicians Realty Trust. Physicians Realty Trust is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Realty Income beats Physicians Realty Trust on 9 of the 17 factors compared between the two stocks.
About Physicians Realty Trust
Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the operating partnership), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of September 30, 2018, owned approximately 97.2% of the partnership interests in our operating partnership (OP Units).
About Realty Income
Realty Income, The Monthly Dividend Company is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,600 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 580 consecutive common stock monthly dividends throughout its 49-year operating history and increased the dividend 98 times since Realty Income's public listing in 1994 (NYSE: O).
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