Gramercy Property Trust (NYSE: GPT) and DCT Industrial Trust (NYSE:DCT) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Profitability

This table compares Gramercy Property Trust and DCT Industrial Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gramercy Property Trust 14.10% 2.60% 1.25%
DCT Industrial Trust 24.39% 5.16% 2.66%

Insider & Institutional Ownership

92.0% of Gramercy Property Trust shares are owned by institutional investors. Comparatively, 95.1% of DCT Industrial Trust shares are owned by institutional investors. 1.4% of Gramercy Property Trust shares are owned by insiders. Comparatively, 1.5% of DCT Industrial Trust shares are owned 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.

Risk and Volatility

Gramercy Property Trust has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, DCT Industrial Trust has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Dividends

Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.6%. DCT Industrial Trust pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Gramercy Property Trust pays out 340.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Gramercy Property Trust has raised its dividend for 2 consecutive years and DCT Industrial Trust has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Gramercy Property Trust and DCT Industrial Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gramercy Property Trust 1 2 3 0 2.33
DCT Industrial Trust 1 5 3 0 2.22

Gramercy Property Trust currently has a consensus target price of $31.25, suggesting a potential upside of 16.00%. DCT Industrial Trust has a consensus target price of $57.88, suggesting a potential upside of 0.44%. Given Gramercy Property Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gramercy Property Trust is more favorable than DCT Industrial Trust.

Earnings & Valuation

This table compares Gramercy Property Trust and DCT Industrial Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gramercy Property Trust $517.26 million 8.37 $33.35 million $0.44 61.23
DCT Industrial Trust $392.78 million 13.66 $93.06 million $1.10 52.38

DCT Industrial Trust has lower revenue, but higher earnings than Gramercy Property Trust. DCT Industrial Trust is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.

Summary

DCT Industrial Trust beats Gramercy Property Trust on 10 of the 15 factors compared between the two stocks.

About Gramercy Property Trust

Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.

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.

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