Monmouth R.E. Inv. (NYSE: MNR) and DuPont Fabros Technology (NYSE:DFT) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Insider and Institutional Ownership

66.1% of Monmouth R.E. Inv. shares are owned by institutional investors. 5.3% of Monmouth R.E. Inv. shares are owned by insiders. Comparatively, 5.6% of DuPont Fabros Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Monmouth R.E. Inv. and DuPont Fabros Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth R.E. Inv. 0 2 3 0 2.60
DuPont Fabros Technology 0 8 3 0 2.27

Monmouth R.E. Inv. currently has a consensus target price of $17.40, suggesting a potential upside of 18.05%. DuPont Fabros Technology has a consensus target price of $62.11, suggesting a potential downside of 6.33%. Given Monmouth R.E. Inv.’s stronger consensus rating and higher probable upside, equities analysts plainly believe Monmouth R.E. Inv. is more favorable than DuPont Fabros Technology.

Dividends

Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 4.6%. DuPont Fabros Technology pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Monmouth R.E. Inv. pays out 170.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DuPont Fabros Technology pays out 121.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth R.E. Inv. has increased its dividend for 3 consecutive years and DuPont Fabros Technology has increased its dividend for 6 consecutive years.

Risk & Volatility

Monmouth R.E. Inv. has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, DuPont Fabros Technology has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares Monmouth R.E. Inv. and DuPont Fabros Technology’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monmouth R.E. Inv. $97.66 million 11.73 $40.27 million $0.40 36.85
DuPont Fabros Technology N/A N/A N/A $1.65 40.19

Monmouth R.E. Inv. has higher revenue and earnings than DuPont Fabros Technology. Monmouth R.E. Inv. is trading at a lower price-to-earnings ratio than DuPont Fabros Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monmouth R.E. Inv. and DuPont Fabros Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth R.E. Inv. 36.04% 9.08% 3.01%
DuPont Fabros Technology 26.98% 17.13% 4.69%

Summary

DuPont Fabros Technology beats Monmouth R.E. Inv. on 8 of the 14 factors compared between the two stocks.

Monmouth R.E. Inv. Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.

DuPont Fabros Technology Company Profile

DuPont Fabros Technology, Inc. (DFT) is a real estate investment trust (REIT). The Company owns, acquires, develops and operates wholesale data centers. The Company’s customers include national and international enterprises across various industries, such as technology, Internet, content providers, cloud providers, media, communications, healthcare and financial services. Its data centers are located in four population centers: Northern Virginia; suburban Chicago, Illinois; Piscataway, New Jersey, and Santa Clara, California. As of December 31, 2016, the Company owned various properties, including 11 operating data centers facilities; five phases of existing data center facilities under development; one shell of a data center under development; two data center facilities with a phase or phases available for development, and parcels of land held for development of four data centers. As of December 31, 2016, the Company’s 11 data centers had a total of 3.3 million gross square feet.

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