Drive Shack (DS) and QTS Realty Trust (QTS) Head to Head Analysis
Drive Shack (NYSE: DS) and QTS Realty Trust (NYSE:QTS) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.
Drive Shack pays an annual dividend of $0.24 per share and has a dividend yield of 8.8%. QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Drive Shack pays out -68.6% of its earnings in the form of a dividend. QTS Realty Trust pays out 390.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QTS Realty Trust has increased its dividend for 2 consecutive years. Drive Shack is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Drive Shack has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, QTS Realty Trust has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.
Institutional and Insider Ownership
41.8% of Drive Shack shares are held by institutional investors. 7.2% of Drive Shack shares are held by insiders. Comparatively, 17.3% of QTS Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Drive Shack and QTS Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||0||4||9||0||2.69|
Drive Shack presently has a consensus price target of $3.75, suggesting a potential upside of 37.87%. QTS Realty Trust has a consensus price target of $56.92, suggesting a potential upside of 5.46%. Given Drive Shack’s higher probable upside, analysts plainly believe Drive Shack is more favorable than QTS Realty Trust.
This table compares Drive Shack and QTS Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||4.60%||2.04%||0.93%|
Valuation and Earnings
This table compares Drive Shack and QTS Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Drive Shack||$292.74 million||0.62||$8.22 million||($0.35)||-7.77|
|QTS Realty Trust||$422.74 million||6.23||$158.07 million||$0.40||134.93|
QTS Realty Trust has higher revenue and earnings than Drive Shack. Drive Shack is trading at a lower price-to-earnings ratio than QTS Realty Trust, indicating that it is currently the more affordable of the two stocks.
QTS Realty Trust beats Drive Shack on 10 of the 17 factors compared between the two stocks.
Drive Shack Company Profile
Drive Shack Inc., formerly Newcastle Investment Corp., is a leisure company. The Company is an owner and operator of golf-related leisure and entertainment businesses. The Company’s portfolio consists of Drive Shack, which is engaged in developing nationwide network of golf entertainment venues; American Golf Corporation, which is a golf course company, and real estate-related assets. American Golf Corporation operates approximately 90 private, resort and public golf courses throughout the United States. It has a range of public and private golf courses in California, New York, and Georgia. It operates multiple facilities that provide golf, tennis, swimming and spa facilities, among others. Its online Pro Shop offers a range of golf gifts, such as personalized golf balls, golf luggage and accessories. Its public golf courses equipped with practice areas, golf shops, driving ranges, and food and beverage options.
QTS Realty Trust Company Profile
QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.
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