QTS Realty Trust (NYSE: QTS) is one of 16 publicly-traded companies in the “Specialized REITs” industry, but how does it contrast to its competitors? We will compare QTS Realty Trust to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Insider & Institutional Ownership

64.6% of shares of all “Specialized REITs” companies are held by institutional investors. 17.3% of QTS Realty Trust shares are held by company insiders. Comparatively, 6.4% of shares of all “Specialized REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares QTS Realty Trust and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
QTS Realty Trust $422.74 million $158.07 million 130.90
QTS Realty Trust Competitors $1.00 billion $531.02 million 29.62

QTS Realty Trust’s competitors have higher revenue and earnings than QTS Realty Trust. QTS Realty Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares QTS Realty Trust and its competitors’ 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%
QTS Realty Trust Competitors 34.60% 8.74% 3.15%

Dividends

QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 3.0%. 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. As a group, “Specialized REITs” companies pay a dividend yield of 4.3% and pay out 170.4% of their earnings in the form of a dividend. QTS Realty Trust has increased its dividend for 2 consecutive years. QTS Realty Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

QTS Realty Trust has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, QTS Realty Trust’s competitors have a beta of 0.86, suggesting that their average share price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for QTS Realty Trust and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QTS Realty Trust 0 4 8 0 2.67
QTS Realty Trust Competitors 85 326 605 24 2.55

QTS Realty Trust presently has a consensus target price of $56.92, suggesting a potential upside of 8.70%. As a group, “Specialized REITs” companies have a potential upside of 13.68%. Given QTS Realty Trust’s competitors higher probable upside, analysts plainly believe QTS Realty Trust has less favorable growth aspects than its competitors.

Summary

QTS Realty Trust competitors beat QTS Realty Trust on 12 of the 15 factors compared.

About QTS Realty Trust

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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